FYI: It’s been a difficult year for the U.S.-based asset managers, with the 12 companies we cover down close to 20% on average since the start of 2018, compared with a nearly 8% price gain for the S&P 500 index. While valuations have become depressed across the group, they’ve also bifurcated between perceived “haves”--wide-moat-rated BlackRock (BLK) and T. Rowe Price (TROW) and narrow-moat-rated Eaton Vance (EV) and Cohen & Steers (CNS)--which are generating above-average rates of organic growth and operating margins (and trading at 25%-plus premiums to the group on a price/earnings basis), and those viewed as “have nots”--narrow-moat-rated Invesco (IVZ), Affiliated Managers Group (AMG), Franklin Resources (BEN), Legg Mason (LM), and Janus Henderson (JHG) and no-moat Waddell & Reed (WDR)--some of which deserve to be trading at steep discounts (of more than 25%) to the group.
Regards,
Ted
https://www.morningstar.com/articles/885254/blackrock-our-top-pick-in-a-tough-year.html
