10 Best Asset Management Stocks to Buy According to Hedge Funds

3. Blackstone Inc. (NYSE:BX)

Number of Hedge Fund Holders as of Q3 2024: 50

Blackstone Inc. (NYSE:BX) is an alternative asset management company specializing in private equity, real estate, hedge fund solutions, and secondary funds. The firm typically invests in early-stage, seed, middle market, mature, late venture and later-stage companies.  The stock is up by 45% year-to-date.

The rally comes from investors reacting to the company’s strategic initiative and strong performance across its asset management portfolio. One of the strategic moves includes the $4 billion acquisition of Retail Opportunity Investments. The asset management firm is also in the process of expanding its footprint into Europe as part of a push to attract funds from wealthy clients. The move will also allow it to diversify beyond the traditional institutional investor base and strengthen its revenue base.

Blackstone Inc. (NYSE:BX) delivered solid third-quarter results on October 17, 2024, that showed robust top-line growth. Revenues in the quarter were up 5% year-over-year to $2.43 billion, attributed to $40 billion in capital deployment. The asset management company’s distributable earnings per share were also up by 7% to $1.01 as assets under management hit record highs of $1.11 trillion.

The company prioritizes increasing retail investor engagement and strategic diversification, expecting these efforts to support growth in several verticals. Blackstone Inc. (NYSE:BX) also adapts to changing market conditions as it seizes new opportunities by utilizing substantial scale and effective fee structures.

Ithaka US Growth Strategy stated the following regarding Blackstone Inc. (NYSE:BX) in its Q3 2024 investor letter:

“Blackstone Inc. (NYSE:BX) is one of the world’s leading alternative asset management firms with total assets under management (“AUM”) now in excess of $1 trillion. Over the past few decades Blackstone has evolved into one of the financial service industry’s largest asset gatherers, managing money on behalf of pension funds, insurance companies, and individual investors. The company remains at the forefront of financial innovation, steadily broadening its product offering over time. Today, Blackstone invests clients’ capital across four business segments: (a) Real Estate, (b) Private Equity, (c) Hedge Fund Solutions, and (d) Credit & Insurance. The stock’s relative outperformance in the quarter was mainly due to investor expectations that the private markets are beginning to un-freeze, which should lead to a step up in deal crystallizations (sales) for the company.”