Top 5 Stock Picks of Glenn Greenberg’s Brave Warrior Capital

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

Brave Warrior Capital’s Stake Value: $360,110,000
Percentage of Brave Warrior Capital’s 13F Portfolio: 12.36%
Number of Hedge Fund Holders: 61

Apollo Global Management, Inc. (NYSE:APO) is a private equity business specializing in credit, private equity, and real estate investments. With a $360.11 million stake in Apollo Global Management, Inc. (NYSE:APO), Glenn Greenberg’s Brave Warrior Capital owned 7.43 million shares of the company as of the end of the second quarter of 2022, making it the most significant shareholder of the company.

Apollo Global Management, Inc. (NYSE:APO) was poised to lose control of the lighting components firm it owns after Lumileds Holdings reached a debt reduction arrangement and filed for bankruptcy on August 29. Lumileds Holdings struggled with supply chain challenges exacerbated by the situation in Ukraine.

On August 12, Deutsche Bank analyst Brian Bedell maintained a ‘Buy’ rating on Apollo Global Management, Inc. (NYSE:APO), while trimming his price objective from $91 to $87. Given the stock market rebound so far in Q3 and the “pretty strong” fundamentals seen in Q2, Bedell updated the macro assumptions in his models.

In addition, our database shows that 61 hedge funds held stakes in Apollo Global Management, Inc. (NYSE:APO) as of the end of the second quarter of 2022 versus 64 funds in the first quarter of 2022.

Miller Value Partners mentioned Apollo Global Management Inc. (NYSE:APO) in their Q4 2021 investor letter. Here is what the fund said:

“Apollo Global Management (NYSE: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 (NYSE:APO) 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.”