Morgan Stanley’s ‘Vintage Values’ Portfolio Underweight On Value

Every year Morgan Stanley chooses the stocks that it has the most confidence in for a one-year investment horizon and releases them as its Vintage Value portfolio. The bank’s research analysts submit more than 50 of their favorite stocks with market caps over $1 billion, with an emphasis on risk/reward profiles, clear catalysts within the next year, and differentiated research that shows ‘out of consensus’ thinking. The researchers list is then whittled down to 15 by senior members of the Wealth Management Strategy and Research groups. Last year’s Vintage Values portfolio edged out the S&P 500 (INDEXSP:.INX) 24.9% to 21.3% between July 10, 2013 and July 8, 2014, and even though Morgan Stanley is forecasting a much flatter year,...