Healthy Flows And Good Expense Management Continue To Drive AllianceBernstein

I can't really complain about how AllianceBernstein Holding LP (AB) has continued to perform. Up more than a third from my last article, management continues to do a good job of delivering on goals like improved expense management, expanded product offerings, and AUM growth. For the full year, AB's total return more than doubled the performance of the average asset manager, and the performance over the last three and five years has likewise been strong as operations have turned around.

I still like this business, even though ongoing pressure on management fees makes it a tough sector in which to compete. Fund performance remains one of my biggest concerns, as I believe asset managers will have to increasingly justify their fee structures to clients, but equity performance has been good, and I like the efforts to expand the alternative investment offerings. With a revised fair value in the low-to-mid $40s, I still like these shares.

 

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Healthy Flows And Good Expense Management Continue To Drive AllianceBernstein