Alternative asset managers (IYF) have seen portfolio appreciations in the range of 3%–5% over the past couple of quarters, mainly due to improving fundamentals.
Alternative managers’ private equity divisions are expected to see improved performances in 2017 on higher liquidity and growth in sectors such as renewables and services.
Alternative asset managers such as Blackstone Group, KKR & Co., and The Carlyle Group saw improved performances in 2H16 on improved broader markets and rising holdings valuations.
Prospect Capital (PSEC) stock rose 3.0% over the past three months and 20.0% over the past year. The company is currently trading 5.0% below its 52-week high.
Prospect Capital (PSEC) has deployed money for equity investments and majority stake when there’s an opportunity for an investment in growing businesses.
Since the Fed increased interest rates in December 2016, Prospect Capital (PSEC) could see some pressure on its cost of capital in 2017.
Prospect has had an average ROE (return on equity) of 9.5% over the past five years compared to the industry average of 7.3%.
Prospect Capital’s (PSEC) deployments toward retail and structured offerings over the past few years have resulted in higher yields compared to industry averages.
Closed-end funds have seen lower originations over the past few quarters on increased competition for deployment of funds in quality paper offerings.
In this series, we’ll look at Prospect Capital’s expected performance, deployments, portfolio strategy, yields, balance sheet strength, dividends, and valuations.
At the end of fiscal 2Q17, Apollo Investment’s (AINV) oil and gas investments represented 9.7% of its total portfolio, or $246 million.
Apollo Investment’s (AINV) realized and unrealized gains stood at $1.6 million in fiscal 2Q17 compared to realized losses of $42.6 million in fiscal 1Q16.
Apollo Investment’s (AINV) total portfolio stood at ~$2.6 billion in fiscal 2Q17 compared to ~$3.2 billion in fiscal 2Q16.
Currently, Apollo Investment (AINV) is trading at 8.5x on a one-year forward earnings basis. Its peers are trading at 8.8x.
Apollo Investment (AINV) posted earnings per share of $0.18 in fiscal 2Q17, compared to analyst estimates of $0.17. In this series, we’ll study AINV’s performance, yields, capital deployment, portfolio, dividends, and valuations.
BlackRock (BLK) rewards its shareholders in line with its operating performance. The dividends are distributed in line with its year-over-year buildup of assets and margins.
BlackRock (BLK) stock has risen 14% in 2016. Most of the rise came in 2H16 on new assets, rising valuations of holdings, and iShares expansion.
BlackRock (BLK) has had to deal with lower pricing for its offerings as competitors offer ETFs and other passive products at attractive prices.
BlackRock’s (BLK) retail business had assets under management of $554 billion as of September 30, 2016, forming 12% of the company’s total assets under management.
BlackRock (BLK) manages total assets of $2.9 trillion as of September 30, 2016, for its institutional investors.