Baron Financials ETF on Morgan Stanley
Thesis
Baron retains long-term conviction in Morgan Stanley following strong execution across Wealth Management and Institutional Securities. Record fee-based flows, strong trading and investment-banking revenues, and a 27% return on tangible equity demonstrate the earnings power of its integrated business model. Management reinforced its confidence through a dividend increase and a new share repurchase authorization. Baron also believes Morgan Stanley is relatively insulated from AI disruption and could benefit from capital raising associated with the multi-year AI infrastructure buildout.
“We retain long-term conviction in the stock”