Morgan Stanley Top Stock Picker Dennis Lynch Outlines His Strategies

At a time when many S&P 500 fund managers saw losses due to the uncertainty of the COVID-19 pandemic, Dennis Lynch of Morgan Stanley had the opposite experience. Lynch, who grew up in Rumson New Jersey, and alternatively goes by the name Marshall Lynch, managed some of 2020’s highest returning funds. He achieved this despite the rigid nature of working with mutual funds.

By the Numbers

Dennis P. Lynch, Jr. (Marshall) uses a unique approach based on research, trends, and the current state of extreme caution when it comes to trading and investing. His approach paid off, and he realized combined gains of 273 percent during the first year of the coronavirus pandemic.

Strategies Dennis Lynch (Marshall) Uses to Pick the Top Stocks

The Wall Street Journal frequently names Dennis Lynch to its Winner’s Circle for many reasons, including those discussed below:

Choosing to Invest in Lesser-Known Disruptors

Dennis Lynch looks for companies that have the potential to disrupt entire industries that few investors even know about yet. He avoids what he considers over-hyped stocks like Tesla in favor of smaller businesses with plenty of room for growth. 

Diversification

Most stock pickers preach the importance of diversification, but the top investor at Morgan Stanley takes it a step further by broadening the scope of his investments. Dennis Lynch refined this approach even more after the pandemic, giving the example of doubling his number of investments from 30 to 60. Not only are his stock picks across a range of markets, but there are more of them at the same time.

Taking a Long-Term Approach

Day trading is not for Dennis Lynch. He prefers taking a long-term approach by looking at how each of his stock picks has performed over the past five years and the past decade. The native of Rumson, New Jersey never worried if a stock did not perform well during the pandemic. Rather, he looked at whether it was on track to hit the 5-year and 10-year benchmarks. If not, he dropped it from his portfolio.

Dennis Lynch describes himself as having a healthy dose of paranoia that has served him well these past few years. Although he is a big fan of industry disruptors, he also has concerns about new disruptors transforming an industry before he even realizes what has happened. Taking this approach to investing has made the top stock picker at Morgan Stanley appreciate the opportunities presented by Bitcoin. He intends to maintain a speculative interest in cryptocurrency while carefully watching trends related to the American dollar.

Placing His Faith in Research-Backed Trends

With as much fondness as Lynch has for potential industry disruptors, he does not forgo caution altogether when making his investment choices. He oversees a research team that reviews the long-term potential of any stock up for consideration. He also cautions all investors not to let the excitement about new possibilities cause them to use poor judgment. Research is always essential, and any stock chosen must live up to expectations beyond what he calls opening day hype.

Dennis Lynch studies trends just as carefully as specific industries or business niches. He never stakes his fortunes on a specific trend, but instead considers the potential for disruption and longevity when making his picks.

About Dennis Lynch

Dennis P. Lynch, Jr. (Marshall) oversees more than $130 billion in assets in his position as Head of Morgan Stanley Counterpoint Global. He also works with multiple equity funds. Dennis holds a Bachelor of Arts in government and a Master of Business Administration in finance, having earned both credentials before coming onboard with Morgan Stanley in 1998.

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