On June 3, Credit Suisse analysts Craig Siegenthaler and Ryan Sullivan published a report "Perspective on the Secular Shift to ETFs, Alts, and High Active Share," updating industry trends, and initiating coverage on five smaller cap asset managers, including:
High growth ETF manager:
- WisdomTree Investments (NASDAQ: WETF) - Outperform, $27 PT; $2.83 billion cap, 1.55 percent yield.
High growth alternative credit manager:
- Ares Management LP (NYSE: ARES) - Neutral, $23 PT; $4.1 billion cap, 5.2 percent yield.
Traditional active managers:
- Artisan Partners Asset Management (NYSE: APAM) - Neutral, $51 PT; $3.2 billion cap, 5.5 percent yield.
- Manning & Napier, Inc. (NYSE: MN) - Neutral, $12 PT; $177 million cap, 5.3 percent yield.
- Virtus Investment Partners (NASDAQ: VRTS) - Neutral, $142 PT; $1.3 billion cap, 1.8 percent yield.
Tale Of The Tape - Past Year
WisdomTree's 12 month outperformance vs this peer group is expected to continue moving forward according to Credit Suisse.
Credit Suisse - Coverage Universe & Ratings
Credit Suisse - Asset Management Trends
Theme 1: The Secular Shift to High from Low Active Share:
"A portfolio that is identical to its benchmark would have an active share percentage of zero. Sources of active share include (1) holding different ...
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