{ "docId": "019dd923-622c-750b-8b99-781d6376c0a8", "docSlug": "9250edf61831", "documentTitle": "MSCI Inc. (MSCI)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2024-01-17 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 56, "pageCount": 123, "prevPage": 55, "nextPage": 57, "slideType": "quote_slide", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a Q&A format to present expert testimony.", "elementsJson": [ "headline_text", "callout_box", "data_table", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-781d6376c0a8/56", "deckHref": "/decks/019dd923-622c-750b-8b99-781d6376c0a8", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-781d6376c0a8.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-781d6376c0a8#slide-56", "components": [ { "bbox": { "h": 0.05, "w": 0.96, "x": 0.02, "y": 0.17 }, "kind": "callout", "text": "Spruce Point interviewed a former MSCI ESG employee who has familiarity with the industry for nearly a decade.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "781e4d75-bc94-4fc9-b6a6-185f42c34266", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "And one of the reasons why I also left MSCI is because I anticipated that there's a very strong saturation of the market with ESG or ratings, which is the product which MSCI can charge the most for. And any other products which are in the family of ESG family of products, ESG family of products, they are nowhere close in terms of how much value they bring to the client base. Plus, they're not sticky and they're not as pricey.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-1ac4-74a6-be23-cec7bf620481", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "β€œIn respect to MSCI ESG, yes, there's been slower growth, substantially slower growth as far as I know. And one of the reasons why I also left MSCI is because I anticipated that there's a very strong saturation of the market with ESG or ratings, which is the product which MSCI can charge the most for. And any other products which are in the family of ESG family of products, ESG family of products, they are nowhere close in terms of how much value they bring to the client base. Plus, they're not sticky and they're not as pricey.” β€” Former MSCI ESG Employee", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-1ac4-74a6-be23-d3102d041502", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.25, "x": 0.02, "y": 0.96 }, "kind": "source-note", "text": "Source: Spruce Point Research Interview", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b73cc0f7-cecf-4e65-947f-8fdf741c735d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.55, "w": 0.96, "x": 0.02, "y": 0.3 }, "kind": "table", "text": "Question: \"And is it fair to say that the ESG movement has seen lower growth recently...\" Answer: \"In respect to MSCI ESG, yes, there's been slower growth...\"", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fc47f9f8-1fc8-4f43-a2e8-334a30d34075", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.6, "x": 0.33, "y": 0.05 }, "kind": "title", "text": "Insights From A Former ESG Employee", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d4353bb7-07ee-4f68-a8e1-edaa7e451e4c", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "authority-citation", "slug": null, "matchId": "77f324e3-b702-47a0-bb08-5cf40b5c3066", "evidence": "Uses an interview with a former industry employee to validate the thesis.", "confidence": 0.9 } ], "arcBeats": [ { "to": 123, "from": 8, "beatId": "d662b123-aabd-40a9-9b1e-07f3af79864c", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "Most slides aim to reveal contradictions or issues with MSCI's reporting, strategy, or performance.", "position": 0, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null }, { "to": 76, "from": 4, "beatId": "5c97492b-d3b4-46d9-8bf6-e685ece94ea2", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Cite Precedent", "beatSlug": null, "evidence": "Spruce Point cites its track record and various precedents to support its claims.", "position": 1, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null }, { "to": 118, "from": 40, "beatId": "0d440955-7c20-44ed-b046-f214de5e9eb4", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Preempt Rebuttal", "beatSlug": null, "evidence": "The document anticipates and counters potential rebuttals to its arguments.", "position": 2, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [ { "to": 123, "from": 1, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "96af0651-6de6-4b30-ba3b-77cee8001437", "evidence": "The loop is implicit, as the document builds a case for selling MSCI shares.", "position": 0, "objective": "Highlight the cost of inaction for investors not selling MSCI shares", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" }, { "to": 66, "from": 14, "name": "Iceberg", "slug": "10-iceberg", "bestFor": "Consulting, complex problem solving, organizational change", "matchId": "135dbc3a-3938-4134-b2a9-cd049699de43", "evidence": "The document uncovers potential issues beneath the surface of MSCI's deals.", "position": 1, "objective": "Reveal hidden issues with MSCI's acquisitions and alliances", "structure": "The Symptom (Visible) -> The System (Hidden) -> The Root Cause", "confidence": 0.6, "description": "Reveal that the visible problem is merely a symptom of a deeper root cause" }, { "to": 90, "from": 40, "name": "Hypothesis Test", "slug": "42-hypothesis-test", "bestFor": "Strategy validation, due diligence, research presentations", "matchId": "fd855c1c-6a52-4469-90e9-b5cd9582ce36", "evidence": "The document presents evidence to support its hypothesis about MSCI's condition.", "position": 2, "objective": "Test the hypothesis that MSCI's financials and business are deteriorating", "structure": "The Hypothesis -> Test 1 (Supports/Refutes) -> Test 2 (Supports/Refutes) -> Conclusion (Validated/Pivoted)", "confidence": 0.6, "description": "State a hypothesis upfront, then systematically prove or disprove it with evidence" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }