James Morrow’s Callodine Capital Portfolio: Top 5 Picks

1.    Ares Management Corporation (NYSE:ARES)

Callodine Capital’s Stake Value: $19,274,000

Percentage of Morrow’s 13F Portfolio: 7.27%

Number of Hedge Fund Holders: 20

Ares Management Corporation (NYSE: ARES) is an investment firm involved in credit, private equity, and real estate markets. Callodine Capital owns 303,096 shares in Ares Management Corporation (NYSE: ARES) as of the second quarter of 2021, worth over $19.27 million.

HMI Capital is the leading investor in Ares Management Corporation (NYSE: ARES), with a stake worth $365 million. Overall, 20 hedge funds were bullish on Ares by the end of the second quarter, compared to 16 in the previous quarter, alluding to the positive hedge fund sentiment.

Since the start of 2021, the stock price of this Los Angeles-based company has experienced an increase of over 64% as opposed to the broader market’s rise of nearly 18%. Recently, through its private equity division, Ares Management made a strategic investment in Lockwood Group. Lockwood Group is known for aiding biotech and pharmaceutical companies in coming up with creative treatments to serve patients. Such investments have generated healthy returns for Ares Management Corporation (NYSE: ARES).

In line with this sentiment, investment advisory Jefferies maintained a Buy rating on Ares Management Corporation (NYSE: ARES) on September 30 and raised the price target from $82 to $86. While issuing the rating, analyst Gerald O’Hara described the business trends as “strong if not robust.”

You can also take a peek at the 11 Best Space Stocks To Buy According To Hedge Funds and 10 High Yield Dividend Champions.

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