Asset manager AllianceBernstein Holding L.P. (AB)
has always required an above-average level of patience, and it doesn’t
help that the company’s legal structure limits institutional ownership
and can create headaches for individual investors. That said, for
investors who can be bothered to deal with the higher level of
complexity (which, depending upon your specific circumstances may not be
that significant), I continue to believe that AB is worth a look, as
management has established what I believe to be a differentiated
strategy that can continue to drive above-average inflows, revenues,
profits, and distributions.
Market risk is always a
concern – whatever can undermine assets under management can undermine
revenue, profits, and distributions. Likewise, execution and performance
remain risks, as money continues to flow from active to passive,
there’s an even greater need to generate strong results from
actively-managed funds. AB is doing this, and I think the shares remain
undervalued below the mid-$30’s.
Read the full article here:
AllianceBernstein Continuing To Out-Execute Its Peers, But Not Fully Rewarded For It
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