A look at the performance and outlook of asset managers in the coming year

  • Stocks of asset managers rebounded in late 2023
  • Many asset managers may have a flat performance in 2024
  • Certain niches, like alternative asset giants and private credit firms, may continue to perform well
  • Cautious outlook due to potential slowing economy and acquisition deal limitations
  • Traditional asset managers facing challenges as investors shift to passive strategies
  • Neutral rating on SEI Investments
  • Optimistic outlook for Blackstone and private credit niche
  • Expectation for private credit to be a bright spot in 2024

Asset managers had a rough start to 2023 but finished strongly, with their stocks rebounding in the late part of the year. However, the performance may not continue in 2024, as many asset managers are expected to have a flat performance. Piper Sandler analyst Crispin Love believes that certain niches, such as alternative asset giants like Blackstone and private credit firms like Hercules Capital, may continue to enjoy a tailwind. However, there are reasons to be cautious, as a slowing economy could limit acquisition deals that provide big payoffs for asset managers. Traditional asset managers are facing challenges as investors shift to passive strategies, while alternative asset managers like Blackstone are seeing success. Love has a neutral rating on SEI Investments and an overweight rating on Blackstone and Hercules Capital. He expects private credit to be a bright spot in 2024, as insurers and retail increase allocations to this niche.

Public Companies: Blackstone (N/A), SEI Investments (N/A)
Private Companies: undefined
Key People: Crispin Love (Piper Sandler analyst)

Factuality Level: 7
Justification: The article provides information about the performance of asset managers in 2023 and their outlook for 2024. It includes quotes from Piper Sandler analyst Crispin Love and mentions his ratings on various asset management firms. The article also discusses the challenges faced by traditional asset managers and the growth of alternative asset managers. Overall, the article provides factual information and quotes from an analyst, but it lacks in-depth analysis and may benefit from additional sources and perspectives.

Noise Level: 3
Justification: The article contains mostly relevant information about the performance and outlook of asset managers. However, it lacks depth and analysis, and there is a significant amount of repetitive information. The article also does not provide evidence or data to support the claims made by the analyst. Overall, the article is relatively short and lacks intellectual rigor.

Financial Relevance: Yes
Financial Markets Impacted: Asset managers and alternative asset firms like Blackstone and Hercules Capital

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the performance and outlook of asset managers and alternative asset firms, which are relevant to financial markets. However, there is no mention of any extreme events.

Reported publicly: www.marketwatch.com