MSCIMSCI (MSCI) develops investment indexes and portfolio risk tools that are used by investment managers and analysts to construct investment funds and measure performance. As alternative investment strategies proliferate the market, alternative index products are becoming crucial tools to adequately measure how a fund is stacking up. That leaves MSCI with ample room to license its newer index products right now.
At the same time, the popularity of ETFs has left fund sponsors searching for unique index funds to pitch to investors; MSCI has been a major licensee for ETFs, particularly in through emerging market indexes.
The vast majority of MSCI's customers access the company's offerings through subscriptions , providing MSCI with a recurring revenue stream that renews at approximately 85%, thanks to the extremely high switching costs involved with changing a performance index or risk analysis tool.Like Moody's, MSCI benefits from an asset-light business model that generates deep net margins and throws off impressive cash flows. With short-sellers bidding the firm up to a short ratio of 9.2, this financial data stock presents an attractive short squeeze opportunity. As of the most recently reported period, MSCI comprised 4% of Eton Capital's portfolio.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV