10 Best Asset Management Stocks to Buy According to Hedge Funds

1. Apollo Global Management, Inc. (NYSE:APO)

Number of Hedge Fund Holders as of Q3 2024: 82

Apollo Global Management, Inc. (NYSE:APO) is an asset management firm specializing in investments in credit, private equity, infrastructure, secondary and real estate markets. The firm’s private equity investments include traditional buyouts, recapitalization, distressed buyouts and debt investments. Apollo Global Management, Inc. (NYSE:APO) is up by 89% year to date on the back of strong financial results that underscore robust underlying growth. In addition, investors have reacted to the company’s ambitious growth targets, including a 20% increase in fee-related earnings and a 10% growth in spread-related earnings.

Apollo Global Management, Inc. (NYSE:APO) is on track to meet its growth goals after reporting strong third-quarter results on November 6, 2024. Strong growth in fee-related revenues and disciplined expenses enabled the asset manager to deliver record fee-related earnings of $531 million. Due to robust organic growth, it also marked the second-highest quarter of spread-related earnings, totaling $856 million.

Apollo Global Management, Inc. (NYSE:APO) has inked strategic partnerships as it looks to unlock new opportunities. It has partnered with BNP Paribas to strengthen its capital markets and financing prospects. Additionally, it has partnered with Citigroup Inc. (NYSE:C) to create a $25 billion private credit and direct lending program. These changes demonstrate Apollo Global Management’s continued financial success and strategic initiatives.

Baron FinTech Fund stated the following regarding Apollo Global Management, Inc. (NYSE:APO) in its Q2 2024 investor letter:

“Strength in Tech-Enabled Financials was broad based, led by gains from alternative asset manager Apollo Global Management, Inc. (NYSE:APO) and specialty insurer Arch Capital Group Ltd. Apollo continues to benefit from disruptive trends in financial services, most notably the shift of retirement assets into higher-yielding private credit given the company’s dual role as an asset manager and an annuity provider. “

While we acknowledge the potential of Apollo Global Management, Inc. (NYSE:APO) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than APO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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