< The 2014 All-Europe Research Team

2014-03-tom-johnson-all-europe-research-team-bruce-hamilton.jpg
Bruce Hamilton
& team
Morgan Stanley
First-Place Appearances: 5

Total Appearances: 15

Team Debut: 1989

With Bruce Hamilton at the helm, the two-person Morgan Stanley squad holds on to first place, earning its fourth top finish in the past five years. The team covers 16 stocks with what one portfolio manager describes as “deep thematic research, high-quality modeling and timely calls.” Tops among that group is the U.K.’s London Stock Exchange Group, whose cost-cutting opportunities are underappreciated, the analysts believe. For example, in May the markets operator acquired a majority stake in U.K.-based multinational clearinghouse LCH.Clearnet Group, and “we believe that management’s initial estimate of €25 million [$34 million] in cost saves related to the deal materially underestimates the true cost opportunity,” says Hamilton, 40. “We expect progress on this through 2014.” Further, “the market underestimates the potential for top-line growth at LCH given the opportunity to benefit from [over-the-counter] clearing growth,” he adds, “where the company enjoys strong market share.” At the sector level, Hamilton and his teammate maintain an in-line view on this group, which climbed 20.3 percent last year, trumping the broad market by 2.2 percentage points. Positive drivers are projected to include cost restructurings, growth opportunities for fund managers in multiasset and alternative asset classes, and potential gains from regulatory changes.

See also Bruce Hamilton's profiles in the 2013 All-Europe Research Team and 2012 All-Europe Research Team.