MSCI - MSCI Inc.

Creator bought the dip after 10% drop, citing strong fundamentals, record margins, aggressive buybacks, and bullish management. Expects 15-20% annual returns.

Strong business with EPS growing ~20%, improving margins, record AUM, and cheap valuation at 23x forward FCF. Concerns about asset-based fees and cost guidance are temporary. Creator plans to buy more after earnings call.

Expects Q2 2026 revenue to grow 14-16% (above consensus of 11.5%) due to strong asset-based fees from surging AUM. Sees potential for significant stock rerating.

Expects revenue and earnings beat due to passive investing growth, insider buying at $565, and aggressive buybacks. Believes Wall Street estimates are too low.

Founder-led company that does meaningful buybacks during dips, with management compensation explicitly tied to earnings per share growth, aligning incentives perfectly with shareholders.

Burry sees MSCI as a bombed-out software stock with high retention, asset-based fees, and strong buybacks. He believes the selloff was due to technical pressures unrelated to fundamentals.

MSCI is the index provider for emerging markets, benefiting from massive inflows. The Q2 earnings on July 21st are expected to beat, with analyst upgrades likely. It's a way to gain from the memory and AI cycle without the direct risk.

Similar to FICO, strong pricing power but leveraged buybacks are a headwind; long-term pricing power outweighs.

Higher margins, less cyclicality, better capital allocation (no dilutive mega-acquisitions), founder-led with significant insider ownership, superior free cash flow per share growth. At current valuation similar to peers, MSCI offers a more attractive risk-reward profile.

Extremely bullish on Q2 earnings (July 21). Valuation fair vs 5 years ago. Expects stock to reaccelerate and return to all-time highs around $700.