5 Best Asset Management Stocks To Buy According To Hedge Funds

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

Number of Hedge Fund Holders: 64

Apollo Global Management, Inc. (NYSE:APO) is a private equity firm that focuses on investing in credit, private equity, and real estate markets. The firm’s investments in private equity include a range of transactions such as traditional buyouts, recapitalizations, distressed buyouts, and debt investments. It is one of the best asset management stocks to buy. 

On April 14, Oppenheimer increased its price target on Apollo Global Management, Inc. (NYSE:APO) to $79 from $73 and maintained an Outperform rating on the shares. The analyst believes that alternative asset managers like Apollo Global Management, Inc. (NYSE:APO) are now seen as “bargains” following the collapse of SVB Financial. 

According to Insider Monkey’s fourth quarter database, 64 hedge funds were bullish on Apollo Global Management, Inc. (NYSE:APO), compared to 65 funds in the prior quarter. 

Here is what Miller Value Partners Income Strategy has to say about Apollo Global Management, Inc. (NYSE:APO) in its Q4 2021 investor letter:

“Apollo Global Management (APO) rose 18.4% during the quarter. The company reported Q3 distributable earnings (DE) of $1.71, well ahead of consensus of $1.10 and the quarterly dividend of $0.50/share (2.8% annualized yield). Fee-related earnings of $300M beat by 7% while realized net performance fees of $312M topped estimates by 23%. Total assets under management (AUM) of $481.1Bn and fee-earning AUM of $361.3Bn both rose +2% sequentially on the back of robust capital raising with $18.1Bn of inflows over the period. Additionally, Apollo hosted their 2021 Investor Day, outlining long-term financial targets including over $9/share in distributable earnings by 2026 (14% Compound Annual Growth Rate (CAGR) from $5.50 pro-forma 2022E) and fee-related earnings of $4.50-$4.75 (18% CAGR). Management expects to roughly double AUM by 2026 to $1trn from $481Bn currently with a 2.25x increase in fee-related revenues to $4.6Bn.”

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