Business

A legendary stock-picker who’s been Wall Street’s top performer for years has gotten whacked to start 2022 as high-growth names have tanked

Dennis Lynch, the Head of Counterpoint Global at Morgan Stanley Investment Management, attends the annual Allen and Co. Sun Valley media conference in Sun Valley, Idaho, U.S., July 10, 2019.
Dennis Lynch, the Head of Counterpoint Global at Morgan Stanley Investment Management in Sun Valley, Idaho on July 10, 2019.

  • Dennis Lynch, Morgan Stanley’s legendary stock-picker, has had a tough start to 2022.
  • His biggest fund is down 24% year-to-date and has a percentile rank of zero compared to others in the same category.
  • Top holdings include high-growth tech stocks, which have been battered in anticipation of a hawkish Fed.
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Funds managed by Dennis Lynch — Morgan Stanley Investment Management’s legendary stock-picker who’s been among Wall Street’s top performers for years — have been whacked to start 2022 as high-growth names have tanked.

The largest fund Lynch oversees, the Morgan Stanley Institutional Fund Class I Growth Portfolio, which invests primarily in established and emerging large-cap companies in the US, has been hit with a 24% year-to-date loss, ranking it in the 0 percentile among funds in the same category.

The losses didn’t begin in 2022, though, and the fund also has a trailing one-year percentile of 0 with losses of 27.3% for the 12 months ending on January 24. 

The fund has gained 23.2% the last three years and is ranked in the 65th percentile among its peers. The five-year performance shows gains of 23.5%, ranking the fund in the 96th percentile.

The fund was created in April 1991 and is still ranked in the top 10 among its US large-cap peers over the past three, five, and 10 years, according to Kiplinger.

Morgan Stanley Institutional Fund’s top holdings include Snowflake (7.37%), Shopify (6.76%), Cloudflare (6.37%), Roblox (5.47%), and DoorDash (4.73%). These kinds of high-growth tech stocks have been hammered recently as investors shift their portfolios in anticipation of tighter monetary policy. 

Lynch’s second-biggest fund, Morgan Stanley Investment Z Share US Advantage Fund (ticker MORAMFA) has lost 26.1% year-to-date, putting it in the first percentile among its peers. It is also in the first percentile on a one-year basis, with losses of about 30% 

The fund, created in December 2005, has gained 13.78% in the last three years and 14.83% in five years, putting it in the 29th and 71st percentiles, respectively. Its top holdings are also mostly beaten down tech names including Shopify (6.78%), Snowflake (6.44%), Uber (5.49%), Roblox (5.405), and Veeva Systems (4.82%).

Lynch, the number one large-cap fund manager in the US in 2020, is head of growth investing at Morgan Stanley Investment Management where he oversees more than $130 billion in assets across a range of equity funds.

The legendary stock picker joined the bank in 1998 and has been the top-performing large-cap fund manager on Wall Street for years. 

A spokesperson for the bank did not respond to a request for comment on the performance of the funds.  

Read the original article on Business Insider

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