Saturday, May 26, 2018

AllianceBernstein Reaping The Benefits Of Past Decisions

I'm pleased with how AllianceBernstein Holding L.P. (AB) continues to perform. The units are up around 10% from when I last wrote about this company, the yield remains quite attractive, and better still the company is reporting improved revenue and profitability as decisions made years ago by prior management start to pay off for the company.

AllianceBernstein isn't, and never will be, suitable for everybody. AXA (OTCQX:AXAHY) owns a majority stake of the business and regular unitholders have virtually no say in the operation of the business. Moreover, the distributions from partnerships like this can have more complicated tax treatment than regular dividends. Even so, I believe AllianceBernstein is well-placed to continue bringing in assets under management and leveraging its existing infrastructure to generate higher margins and higher distributions for unitholders.

Read more here:
AllianceBernstein Reaping The Benefits Of Past Decisions

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