Diapers Get Messy…But Could Be A Good Business To Be In.

A Morgan Stanley-backed investment fund recently announced it has taken a  stake in baby and adult diaper maker DSG International Thailand:

http://www.reuters.com/article/us-dsg-intl-th-morgan-stanley-m-a-idUSKCN12B10H

Groupe Bruxelles Lambert, a Belgium-based investment holding company which I believe is a good long-term hold and is up nearly 15% in EUR terms since my post (ABC, DEF, GBL?), also has exposure to a similar business via its investment in Belgium’s Ontex (www.ontexglobal.com).

I am going to go out on a limb here, but it looks like the smart money may be in diapers.

 

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To Be Or Not To Be (Activist)…Apparently ValueAct Answered That Question With Morgan Stanley.

Investing genius Jeffrey Ubben and his team at ValueAct Capital Management L.P. were in the news on Monday with a report (form 13F) that fund or funds affiliated with the company had taken a roughly 2% stake in Wall Street giant and James Gorman-led financial services powerhouse Morgan Stanley.

What seemed to take many on the Street by surprise was that ValueAct was not seeking a seat on Morgan Stanley’s Board nor did it seek to criticize the actions of C.E.O Gorman. On the contrary, it would appear ValueAct thinks Gorman is running the firm quite well, and believes investors are not giving the company the credit it deserves.

In particular, ValueAct highlighted Morgan Stanley’s shift to asset-light and relatively lower risk businesses like wealth and investment management and investment banking advisory, which now account for about 80% of company profits.

http://www.bloomberg.com/news/articles/2016-08-15/valueact-adds-morgan-stanley-seagate-sells-motorola-solutions

http://www.reuters.com/article/us-morganstanley-valueact-idUSKCN10R20N

Time will tell if this “passive” approach will pay off.