O’keefe Stevens Advisory, an investment advisory firm, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the portfolio declined, while the firm is confident in the companies it invested in and expects long-term value addition to its holdings. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
O’keefe Stevens Advisory highlighted stocks like Lazard Ltd (NYSE:LAZ) in the Q3 2022 investor letter. Based in Hamilton, Bermuda, Lazard Ltd (NYSE:LAZ) is a financial services company that operates in Financial Advisory and Asset Management segments. On October 26, 2022, Lazard Ltd (NYSE:LAZ) stock closed at $36.20 per share. One-month return of Lazard Ltd (NYSE:LAZ) was 13.66% and its shares lost 31.00% of their value over the last 52 weeks. Lazard Ltd (NYSE:LAZ) has a market capitalization of $3.358 billion.
O’keefe Stevens Advisory made the following comment about Lazard Ltd (NYSE:LAZ) in its Q3 2022 investor letter:
“In light of our current outlook, we made some changes to the portfolio, purchasing Lazard Ltd (NYSE:LAZ) while selling our stake in SRG and BEN.
Lazard (LAZ) has two business segments, an asset management business focused predominantly on equity investments and an Advisory segment where they assist clients with M&A, Restructuring, and other strategic initiatives. Over the past three years, Advisory and Asset management revenues have been roughly 50/50.
On the Asset Management side, equities comprise 78% of assets, fixed income comprises 18%, and alternative investments make up the rest. As with most active managers, fund outflows have occurred over the past several years, while fees have decreased marginally from 51bps to the high 40s. Aware of this headwind, Lazard’s active management fees remain below a typical active manager’s. We exited our position in Franklin Resources, using the proceeds to fund our LAZ purchase. Our goal was to gain exposure to an asset manager with an equity focus over a company focused on growing its Fixed Income and Alternative Investments base. Lazard’s investment strategies are tilted toward value investments. This style gives us confidence that assets may go from a net outflow to a net inflow as the value rotation continues. Additionally, the risk of owning unprofitable, pie-in-the-sky ideas is reduced when investing with Lazard…” (Click here to read the full text)
Source: PEXELS
Lazard Ltd (NYSE:LAZ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Lazard Ltd (NYSE:LAZ) at the end of the second quarter which was 14 in the previous quarter.
We discussed Lazard Ltd (NYSE:LAZ) in another article and shared the list of stocks to buy according to John Rogers’ Ariel Investments. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
