The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how asset management stocks fared in Q2, starting with Artisan Partners (NYSE: APAM).
Asset management firms oversee investment portfolios for institutions and individuals. The industry benefits from the growing global wealth pool, retirement savings needs, and expansion into alternative investments (private equity, real estate, etc.). However, firms face significant pressure from the shift to lower-cost passive investment products, regulatory requirements for fee transparency, and increasing technology costs to stay competitive in portfolio management and client service.
The 5 asset management stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.3%.
While some asset management stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.5% since the latest earnings results.
Artisan Partners (NYSE: APAM)
Founded in 1994 with a focus on autonomous investment teams and a "high-value-added" approach, Artisan Partners (NYSE: APAM) is an investment management firm that offers actively managed equity and fixed income strategies to institutional and individual investors.
Artisan Partners reported revenues of $282.7 million, up 4.4% year on year. This print exceeded analysts’ expectations by 0.8%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ management fees estimates.
Artisan Partners delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 4.8% since reporting and currently trades at $43.64.
Is now the time to buy Artisan Partners? Access our full analysis of the earnings results here, it’s free.
Best Q2: Blackstone (NYSE: BX)
With over $1 trillion in assets under management and investments spanning real estate, private equity, credit, and hedge funds, Blackstone (NYSE: BX) is a global alternative asset manager that invests capital on behalf of pension funds, sovereign wealth funds, and other institutional investors.
Blackstone reported revenues of $3.10 billion, up 22.9% year on year, outperforming analysts’ expectations by 8.6%. The business had a stunning quarter with a solid beat of analysts’ fee-related earnings and EPS estimates.
Blackstone delivered the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.4% since reporting. It currently trades at $176.10.
Is now the time to buy Blackstone? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Ares (NYSE: ARES)
With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE: ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.
Ares reported revenues of $1.02 billion, up 16.2% year on year, falling short of analysts’ expectations by 1.1%. It was a slower quarter as it posted a significant miss of analysts’ EPS and management fees estimates.
Ares delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 11.6% since the results and currently trades at $164.14.
Read our full analysis of Ares’s results here.
TPG (NASDAQ: TPG)
Founded in 1992 and managing over 300 active portfolio companies across more than 30 countries, TPG (NASDAQ: TPG) is a global alternative asset management firm that invests across private equity, credit, real estate, and public market strategies.
TPG reported revenues of $489.4 million, up 5.3% year on year. This print topped analysts’ expectations by 5.2%. Overall, it was an exceptional quarter as it also put up a beat of analysts’ EPS and fee-related earnings estimates.
The stock is down 2.2% since reporting and currently trades at $58.90.
Read our full, actionable report on TPG here, it’s free.
Carlyle (NASDAQ: CG)
Founded in 1987 with just $5 million in capital and named after the iconic New York hotel where the founders first met, The Carlyle Group (NASDAQ: CG) is a global investment firm that raises, manages, and deploys capital across private equity, credit, and investment solutions.
Carlyle reported revenues of $984 million, up 24.7% year on year. This number surpassed analysts’ expectations by 8%. It was an exceptional quarter as it also recorded a solid beat of analysts’ fee-related earnings and AUM estimates.
Carlyle scored the fastest revenue growth among its peers. The stock is up 8.8% since reporting and currently trades at $65.37.
Read our full, actionable report on Carlyle here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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