雅虎香港財經 What Makes Apollo Global Management (APO) an Attractive Investment Opportunity?
Baron Funds, an investment management company, released its “Baron FinTech Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund rose 4.83% (Institutional Shares) compared to an 8.24% gain for the FactSet Global FinTech Index and a 7.50% gain for the S&P 500 benchmark index. Against a confusing market backdrop, the Fund appreciated during the first quarter yet trailed the Benchmark and the broader market. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron FinTech Fund highlighted stocks like Apollo Global Management, Inc. (NYSE:APO) in the first quarter 2023 investor letter. Headquartered in New York, New York, Apollo Global Management, Inc. (NYSE:APO) is a private equity firm. On June 5, 2023, Apollo Global Management, Inc. (NYSE:APO) stock closed at $70.50 per share. One-month return of Apollo Global Management, Inc. (NYSE:APO) was 11.95%, and its shares gained 17.98% of their value over the last 52 weeks. Apollo Global Management, Inc. (NYSE:APO) has a market capitalization of $40.002 billion.
Baron FinTech Fund made the following comment about Apollo Global Management, Inc. (NYSE:APO) in its Q1 2023 investor letter:
"We also initiated a new position in Apollo Global Management, Inc. (NYSE:APO), one of the largest alternative asset managers in the world with $548 billion of assets under management. While Apollo’s roots are in private equity (PE), the majority of the business and much of the growth potential is in private credit, which refers to lending by non-banks. Apollo has a captive annuity and life insurance company, Athene, which it uses to source retirement funds that it can then deploy in alternative investments. The company is unique because it is one of the few scaled investors that can source retirement funds and has deep investment expertise in alternative investments. Through continued growth of assets under management, we believe that Apollo is well placed to grow its multiple earnings streams.
Apollo was founded in 1990 as a PE manager. While Apollo was and remains a successful PE investor, particularly in complex situations, CEO and co-founder Marc Rowan realized there was a large opportunity to deliver lower but less risky returns to investors with a different risk appetite, namely retirees. While most alternative asset managers have to consistently raise new capital to invest, retirement assets are a large source of near-permanent capital. Moreover, the long duration of these assets makes them a good candidate for deploying into illiquid, alternative investments. This insight led to the creation of Athene in 2009. While Athene was initially a separate company with Apollo as its sole asset manager, the two companies merged in 2022...” (Click here to read the full text)
Apollo Global Management, Inc. (NYSE:APO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held Apollo Global Management, Inc. (NYSE:APO) at the end of first quarter 2023 which was 64 in the previous quarter.
We discussed Apollo Global Management, Inc. (NYSE:APO) in another article and shared the best asset management stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
