Insights from the Latest N-PORT Filing for Q2 2024
The MS Global Franchise Portfolio (Trades, Portfolio), managed by Morgan Stanley Institutional Fund Global Franchise Portfolio Class I (MSFAX), recently disclosed its investment activities for the second quarter of 2024. Established on November 28, 2001, the fund is steered by a seasoned investment team that employs a rigorous, bottom-up stock selection process. This approach focuses on identifying high-quality companies characterized by sustainable, high unlevered return on invested capital (ROIC), robust free cash flow generation, and strong franchise value.
Summary of New Buys
During this quarter, MS Global Franchise Portfolio (Trades, Portfolio) expanded its portfolio by adding new stocks, including:
- The most significant addition was CME Group Inc (CME, Financial), with 39,131 shares, accounting for 0.28% of the portfolio and a total value of $7.69 million.
Key Position Increases
The portfolio also saw increases in several key positions:
- Constellation Brands Inc (STZ, Financial) saw an addition of 146,491 shares, bringing the total to 259,405 shares. This adjustment represents a significant 129.74% increase in share count, impacting the current portfolio by 1.38%, with a total value of $66.74 million.
- Haleon PLC (LSE:HLN, Financial) had an additional 7,838,938 shares, bringing the total to 12,822,923. This adjustment represents a significant 157.28% increase in share count, with a total value of £52.17 million.
Summary of Sold Out Positions
The fund completely exited its position in:
- Veralto Corp (VLTO, Financial), selling all 164,652 shares, which resulted in a -0.5% impact on the portfolio.
Key Position Reductions
Significant reductions were made in several stocks, including:
- Heineken NV (XAMS:HEIA, Financial) was reduced by 506,396 shares, resulting in an -80.22% decrease in shares and a -1.67% impact on the portfolio. The stock traded at an average price of €91.98 during the quarter and has returned -15.50% over the past three months and -11.68% year-to-date.
- Philip Morris International Inc (PM, Financial) was reduced by 339,386 shares, resulting in a -38.21% reduction in shares and a -1.06% impact on the portfolio. The stock traded at an average price of $97.77 during the quarter and has returned 21.64% over the past three months and 30.63% year-to-date.
Portfolio Overview
As of the second quarter of 2024, MS Global Franchise Portfolio (Trades, Portfolio)'s portfolio included 40 stocks. The top holdings were 8.86% in Microsoft Corp (MSFT, Financial), 6.81% in SAP SE (XTER:SAP, Financial), 5.88% in Visa Inc (V, Financial), 5.09% in Accenture PLC (ACN, Financial), and 4.48% in Intercontinental Exchange Inc (ICE, Financial). The holdings are mainly concentrated in 7 of all the 11 industries: Technology, Healthcare, Financial Services, 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.
