Investment management company Vulcan Value Partners recently released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The firm has five strategies, and all gained positive returns and outperformed their respective benchmark indexes in the first quarter. The fund’s Large-Cap Composite returned 14.0% net of fees and expenses, the Small Cap Composite returned 8.1% net, the Focus Composite returned 20.4% net, the Focus Plus composite returned 20.4%, and the All-Cap Composite returned 16.8% net. You can check the top 5 holdings of the fund to know its best picks in 2023.
Vulcan Value Partners highlighted stocks like Ares Management Corporation (NYSE:ARES) in the first quarter 2023 investor letter. Headquartered in Los Angeles, California, Ares Management Corporation (NYSE:ARES) is an alternative asset management company. On May 5, 2023, Ares Management Corporation (NYSE:ARES) stock closed at $81.95 per share. One-month return of Ares Management Corporation (NYSE:ARES) was 1.75%, and its shares gained 29.48% of their value over the last 52 weeks. Ares Management Corporation (NYSE:ARES) has a market capitalization of $24.318 billion.
Vulcan Value Partners made the following comment about Ares Management Corporation (NYSE:ARES) in its Q1 2023 investor letter:
“Ares Management Corporation (NYSE:ARES), is a global, diversified alternative asset manager with a focus on credit and debt funds. Among alternative asset managers, Ares has a leading market share in credit products. These credit products generate fee-related revenue, which we believe translates to stable earnings power. Ares is benefiting from increasing investor demand for private credit assets. According to industry data, the gap between current and target allocations for institutions is wider for private credit than for private equity, implying that private credit has substantial opportunity for growth. Ares has generated strong historical returns in private credit. Demand for private credit funding has increased from private equity sponsors, who are Ares’s primary customers. This increased demand has resulted in market share gains for private credit against the banks and public markets, and we believe that trend will continue. We think that scale and relationships are Ares’ most important competitive advantages and, to the extent these advantages lead to strong returns, this should lead to continued growth in AUM. The alternative asset management space is competitive, but we believe that Ares is well positioned.”
Investments, Finance
Ares Management Corporation (NYSE:ARES) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Ares Management Corporation (NYSE:ARES) at the end of the fourth quarter which was 29 in the previous quarter.
We discussed Ares Management Corporation (NYSE:ARES) in another article and shared the list of best asset management stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 10 Best Gold Stocks to Buy for Portfolio Diversification
- 10 Best Department Store and Discount Retailer Stocks to Buy
- 11 Best Conglomerate Stocks to Buy Now
Disclosure: None. This article is originally published at Insider Monkey.
