One financial industry group that does especially well during
bull markets is the asset managers. Not only do their funds rise
with equity prices, but they tend to attract more new investment
money and generate more revenues in a virtuous spiral.
If, that is, they are performing in line with their index
benchmarks. Or better yet, leaving them behind.
Affiliated Mangers Group
(AMG), and the private equity princes
(APO) have all been at least Zacks #2 Rank stocks this year and
their stock investors have been rewarded with steady returns, just
like their institutional ones.
I make a habit of paying attention to these money masters every day
for my Follow The Money (FTM) trading service which tracks
institutional buying in growth stocks. And another name that pops
up quite frequently in my screening and digging through the SEC
filings just went public this year and is our Zacks #1 Rank Bull of
New AM on the Block
Artisan Partners Asset Management
(APAM) is a $4.2 billion investment management firm that provides a
range of active, global equity strategies. The firm manages $97
billion in investments for other institutions primarily through
mutual funds and separate accounts.
Its clients include pension and profit sharing plans, trusts,
endowments, foundations, charitable organizations, government
entities, private funds and non-U.S. pooled investment vehicles.
Artisan prefers its clients to have an allocation structure and
process that lends itself to longer-term investing, and has turned
away some "faster" money funds.
Talent Above All
While the firm that had its IPO in March of this year, Artisan
Partners Asset Management, was founded on in 2011, the roots of
Artisan Partners go back to 1994 when Andy and Carlene Ziegler
wanted to create a different type of asset manager that valued
talent. Over the years, they have built a model around fund manager
autonomy, focus, and support.
With five investment teams covering Global Equity, Growth, U.S.
Value, Global Value and Emerging Markets, fund managers run about
10 mutual funds using 13 different strategies. And they are freed
of marketing and sales duties and allowed to focus on what they do
best: pick stocks.
Performance Begets Success
According to Investor's Business Daily in their November 26 profile
"At Artisan Partners, Stock-Picking Strategy Pays Off," of the
firm's 12 funds that have long-term track records, nine have
outperformed benchmarks in both the last year and the most recent
Those kind of numbers beat the majority of portfolio managers over
the long run since only 1 in 5 manage to survive and best their
benchmarks. From IBD...
"As a result, assets under management, revenue and earnings have
all ballooned. Artisan reported assets of nearly $97 billion at the
end of the third quarter. That's up 39% from the $69.8 billion in
managed assets a year earlier. Revenue came in at $178 million -
also up 39% from 2012's third quarter. Artisan earned 67 cents a
share in the quarter ended Sept. 30, up from 43 cents in the
corresponding 2012 period."
Watch the Rank, It's Money in the Bank
Artisan first became a Zacks #1 Rank on June 4 when shares were
trading $47. Within two weeks they marched to new highs of $56.
Then APAM earned the Zacks #1 Rank again on October 3 at $52 before
it made a month long surge to new highs at $64.
Since the investment management industry is currently in the top
10% of industries ranked by Zacks -- and since the bull market is
far from over -- it pays to watch the asset managers right now, and
this smaller player in particular.
Kevin Cook is a Senior Stock Strategist for Zacks where he runs
Follow The Money
AFFIL MANAGERS (AMG): Free Stock Analysis
ARTISAN PTNR AM (APAM): Free Stock Analysis
APOLLO GLOBAL-A (APO): Free Stock Analysis
BLACKROCK INC (BLK): Free Stock Analysis Report
BLACKSTONE GRP (BX): Free Stock Analysis Report
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