Insightful Analysis of MS Global Franchise Portfolio (Trades, Portfolio)'s Third Quarter 2024 N-PORT Filing
MS Global Franchise Portfolio (Trades, Portfolio) recently submitted the N-PORT filing for the third quarter of 2024, providing insights into its investment moves during this period. Morgan Stanley Institutional Fund Global Franchise Portfolio Class I (MSFAX) was established on November 28, 2001. The fund is managed by an investment team that follows a distinct and disciplined investment process based on bottom-up stock selection. This approach is driven by the team's assessment of each stock's quality and valuation characteristics, with sector, industry, and stock weightings reflecting these evaluations. The team screens companies based on financial metrics associated with strong franchise businesses, focusing on sustainable, high unlevered return on invested capital (ROIC). This is achieved through recurring revenues, high gross margins, and low capital intensity, supporting strong free cash flow generation. The team seeks high-quality businesses with intangible assets, sustainable high ROIC, and reliable revenue streams, while monitoring for signs of franchise abuse.
Summary of New Buy
MS Global Franchise Portfolio (Trades, Portfolio) added a total of four stocks, among them:
- The most significant addition was Alphabet Inc (GOOGL, Financial), with 438,311 shares, accounting for 2.53% of the portfolio and a total value of $72.69 million.
- The second largest addition to the portfolio was Booking Holdings Inc (BKNG, Financial), consisting of 17,113 shares, representing approximately 2.5% of the portfolio, with a total value of $72.08 million.
- The third largest addition was AutoZone Inc (AZO, Financial), with 13,752 shares, accounting for 1.51% of the portfolio and a total value of $43.32 million.
Key Position Increases
MS Global Franchise Portfolio (Trades, Portfolio) also increased stakes in a total of six stocks, among them:
- The most notable increase was CME Group Inc (CME, Financial), with an additional 302,602 shares, bringing the total to 341,733 shares. This adjustment represents a significant 773.31% increase in share count, a 2.32% impact on the current portfolio, with a total value of $75.40 million.
- The second largest increase was L'Oreal SA (XPAR:OR, Financial), with an additional 101,624 shares, bringing the total to 215,973. This adjustment represents a significant 88.87% increase in share count, with a total value of €96.87 million.
Summary of Sold Out
MS Global Franchise Portfolio (Trades, Portfolio) completely exited three holdings in the third quarter of 2024, as detailed below:
- Danaher Corp (DHR, Financial): MS Global Franchise Portfolio (Trades, Portfolio) sold all 230,234 shares, resulting in a -2.11% impact on the portfolio.
- Moody's Corp (MCO, Financial): MS Global Franchise Portfolio (Trades, Portfolio) liquidated all 103,308 shares, causing a -1.59% impact on the portfolio.
Key Position Reduces
MS Global Franchise Portfolio (Trades, Portfolio) also reduced positions in 31 stocks. The most significant changes include:
- Reduced Intercontinental Exchange Inc (ICE, Financial) by 312,432 shares, resulting in a -34.96% decrease in shares and a -1.57% impact on the portfolio. The stock traded at an average price of $154.20 during the quarter and has returned 0.94% over the past three months and 27.05% year-to-date.
- Reduced Accenture PLC (ACN, Financial) by 130,049 shares, resulting in a -28.36% reduction in shares and a -1.44% impact on the portfolio. The stock traded at an average price of $328.84 during the quarter and has returned 7.30% over the past three months and 5.33% year-to-date.
Portfolio Overview
At the third quarter of 2024, MS Global Franchise Portfolio (Trades, Portfolio)'s portfolio included 41 stocks. The top holdings included 7.78% in Microsoft Corp (MSFT, Financial), 7.07% in SAP SE (XTER:SAP, Financial), 5.62% in Visa Inc (V, Financial), 4.04% in Accenture PLC (ACN), and 3.58% in Aon PLC (AON, Financial).
The holdings are mainly concentrated in seven of the eleven industries: Technology, Financial Services, Healthcare, Consumer Defensive, Industrials, Consumer Cyclical, and Communication Services.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
