Ares Management Plunges 25.2% in February, Stocks Rally with Peers
Ares Management fell 25.2% in February, making it the third-worst S&P 500 performer after reporting a sizable earnings miss. Its stock rallied today alongside KKR and Apollo despite differing fundamentals, as investors rotated back into private equity names.
1. February Performance
Ares Management’s stock fell 25.2% in February, ranking as the third-worst performer in the S&P 500 behind KKR’s 23.3% drop and Apollo’s 22.3% decline. Investors grew concerned over its private credit exposure, particularly into software companies, grouping it with peers despite differing fundamentals.
2. Earnings Miss and Stock Rebound
The firm posted a sizable quarterly earnings miss, contrasting with KKR’s modest shortfall and Apollo’s beat. Shares rebounded sharply today as investors rotated back into beaten-down private equity names, suggesting initial credit concerns may have been overstated.