Alternative asset manager stocks highly attractive, Oppenheimer says
XLF•Oppenheimer analyst Chris Kotowski says the sell-off in alternative asset manager stocks is overdone and shares are highly attractive, arguing that macro narratives have repeatedly hurt valuations without materially changing the industry's fundamentals.
1. Sell-off called overdone
Kotowski says alternative asset manager stocks are highly attractive as the industry continues to perform well on a fundamental basis. He says rate hikes do not change the underlying business or investors’ willingness to allocate to future fundraises, and points to a 42% stock decline in 2015-16 after lower oil prices widened high-yield bond spreads, which he says had only minor and short-term business impacts.
