Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Barron’s likes asset managers

edited June 2022 in Other Investing
From current issue - BlackRock is their top pick. It’s stock value is back to 2018 levels. These firms are a play on an eventual rebound in stock prices and a revival of investor interest.

Re T. Rowe Price, Baron’s recommends the stock, but mentions some recent problems at the firm:

“T. Rowe Price has taken one of the biggest hits in the sector, with its shares down 46%, to $106. The former investor favorite has had outflows, and the performance of its growth-oriented mutual funds has been dismal this year. One of its flagship funds, T. Rowe Price New Horizons (PRNHX), is down 40% this year.”

Others mentioned as attractive acquisition candidates (no particular order):
Franklin Resources
Invesco
AllianceBernstein


Article: Asset Managers Are Worth Buying Now - by Andrew Bary

FWIW

Comments

  • TROW stock has a 4.5% dividend yield-is that at risk now?
  • edited June 2022
    Here’s an additional excerpt from the same article -

    It now trades cheaply at 10.5 X projected 2022 earnings, and yields 4.5%. T. Rowe Price also has one of the industry's best balance sheets, with $3.5 billion, or $16 a share, of net cash and fund investments. “Among active managers, it's best-of-breed,” says Warren. “The current multiple of 10 to 11 times is unheard of for T. Rowe.” Warren has a fair value of $155 for T. Rowe's shares. The stock historically has traded for 15 times (projected earnings)

    (I’m not a fan of TRP personally. And think it’s a bit early to be buying any of these.)
  • +1 Thanks for info hank. I may buy a small amount in my Fido ira just to track it.
  • edited June 2022
    I saw that same article. I cannot read it because I do not subscribe, but am heartened by it. Morale builder for me, with 35% of portfolio now in Financials. That, of course, includes Asset Managers. PRISX. Also, BHB. And BHB just paid a divvy on Fri, 17th June: 4.01% yield.
    https://seekingalpha.com/article/4519072-bar-harbor-bank-growing-small-cap-new-england-bank-yielding-4-1-percent
  • Crash said:

    I saw that same article. I cannot read it because I do not subscribe, but am heartened by it.

    This may work for you.
    Start a new browser session (don't use private or incognito mode).
    Search for "Markets Won’t Sink Forever. Asset Manager Stocks Are a Cheap Play on a Recovery."
    Click on the corresponding link.
    A message, "Continue reading this article with a Barron's subscription", is displayed.
    Click on the X to close message.
    The article should be readable now.

  • @Observant1. It worked! No pop-up message, either. Maybe my ad-blocker did that?
  • edited June 2022
    Sorry my Kindle subscription won’t link to board. It’s a bit of a struggle just to excerpt short passages and post those. One way to dig up the article online is to cut & past the excerpt and than search for it. With some patience and using “Duck Go” or another good browser sometimes articles can be pulled up in their entirety - at least at first grab.

    The article is relatively brief. Most of us are aware these asset managers are way down. They tend to wax and wane as equity markets rise and fall, which affects their AUM. I’d say Barron’s was favorably disposed towards all 5 which I listed above. (Pick your own poison.) I’m saturated with financial type holdings. So not very interested in these. Otherwise I’d venture into BlackRock.

    My next foray will be to dive into some depressed tech. Hence, some interest in blue chip funds which tend to own a lot. I did notice that PRMTX is now open. A great fund in the past. Wouldn’t mind owning some. But suffering from fund inflation (having too many).

    Added: I’ll humbly submit that those of us who have witnessed first-hand some of the underlying issues at T. Rowe Price (primarily client commitment and service) may have a better “take” on the overall prospects for this firm than some analyst looking at historical performance or past and present P/E ratios. Those issues have been repeatedly referenced / described for well over a year now by some pretty astute members here. My guess is that they won’t be easily or quickly fixed.
  • Crash said:

    @Observant1. It worked! No pop-up message, either. Maybe my ad-blocker did that?

    Glad it worked for you!

Sign In or Register to comment.