Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Investment Management & Fund Operators industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Investment Management & Fund Operators Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Investment Management & Fund Operators Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Investment Management & Fund Operators industry for Thursday, April 04, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Investment Management & Fund Operators industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Associated Capital Group Inc’s Value Grade

Value Grade:

Associated Capital Group, Inc. is a diversified global financial services company. The Company provides alternative investment management services and operates a direct investment business that invests in businesses that fit its criteria over time. The Company conducts its investment management activities through its wholly owned subsidiary Gabelli & Company Investment Advisers, Inc. (GCIA) and its wholly owned subsidiary, Gabelli & Partners, LLC (Gabelli & Partners). GCIA and Gabelli & Partners together serve as general partners or investment managers to investment funds, including limited partnerships and offshore companies (collectively, Investment Partnerships), and separate accounts. It primarily manages assets across a range of risk and event arbitrage portfolios and in equity event-driven value strategies. It serves a variety of investors globally, including private wealth management clients, corporations, corporate pension and profit-sharing plans, foundations and endowments.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Associated Capital Group Inc has a Value Score of 63, which is considered to be undervalued.

When you look at Associated Capital Group Inc’s price-to-sales ratio at 54.61 compared to the industry median at 4.01, this company has a higher price relative to revenue compared to its peers. This could make Associated Capital Group Inc’s stock less attractive for value investors.

Associated Capital Group Inc’s price-earnings ratio is 18.67 compared to the industry median at 14.44. This means it has a higher share price relative to earnings compared to its peers. This could make Associated Capital Group Inc less attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Associated Capital Group Inc’s shareholder yield is lower than its industry median ratio of 3.61%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Associated Capital Group Inc’s price-to-book ratio is lower than its industry median ratio of 1.10. This could make Associated Capital Group Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Associated Capital Group Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Associated Capital Group Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.64. This could make Associated Capital Group Inc more attractive because the lower P/FCF ratio indicates that Associated Capital Group Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

BROOKFIELD ASSET MANAGEMENT LTD’s Value Grade

Value Grade:

Brookfield Asset Management Ltd. is primarily engaged in providing alternative asset management services. The Company provides its services through an ownership interest in an alternative asset management business, which is carried on by Brookfield Asset Management Inc. (Brookfield) and its subsidiaries. Its products have three categories, which include long-term private funds, perpetual strategies and liquid strategies. The Company's wholly owned subsidiaries include 2451634 Alberta Inc. and Brookfield UK Employee Co Limited. Brookfield is a global alternative asset manager with assets under management across real estate, infrastructure, renewable power and transition, private equity and credit. Brookfield offers a range of alternative investment products to investors around the world, including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

BROOKFIELD ASSET MANAGEMENT LTD has a Value Score of 71, which is considered to be undervalued.

BROOKFIELD ASSET MANAGEMENT LTD’s price-earnings ratio is 9.3 compared to the industry median at 14.4. This means that it has a lower price relative to its earnings compared to its peers. This makes BROOKFIELD ASSET MANAGEMENT LTD more attractive for value investors.

BROOKFIELD ASSET MANAGEMENT LTD’s price-to-book ratio is lower than its peers. This could make BROOKFIELD ASSET MANAGEMENT LTD more attractive for value investors when compared to the industry median at 1.10.

You can read more about BROOKFIELD ASSET MANAGEMENT LTD’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

CaliberCos Inc’s Value Grade

Value Grade:

CaliberCos Inc. is a vertically integrated asset management company. The Company is engaged in building wealth for its investor clients by creating, managing, and servicing proprietary products including middle-market investment funds, private syndications, and direct investments. The Company?s funds include investment vehicles focused primarily on real estate, private equity, and debt facilities. The Company operates through three segments: Fund Management, Development, and Brokerage. The Fund Management segment represents its fund management activities along with back office and corporate support functions, including accounting and human resources. The segment includes the activities of Caliber Services, LLC, and its subsidiaries. The Development segment represents its activities associated with providing real estate development services as their principal developer. The Brokerage segment is involved in the buying, selling, and leasing of all its fund?s assets.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

CaliberCos Inc has a Value Score of 64, which is considered to be undervalued.

CaliberCos Inc’s price-to-book ratio is lower than its peers. This could make CaliberCos Inc more attractive for value investors when compared to the industry median at 1.10.

You can read more about CaliberCos Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Hywin Holdings Ltd - ADR’s Value Grade

Value Grade:

Hywin Holdings Ltd is a China-based company mainly engaged in the provision of third-party wealth management service. The Company primarily provide wealth management services, insurance brokerage services, asset management services and other services. Its wealth management solution platform serves its clients across lifecycles and both onshore and offshore. Its privately raised products consist of real estate products, and private equity and venture capital funds products.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Hywin Holdings Ltd - ADR has a Value Score of 93, which is considered to be undervalued.

Hywin Holdings Ltd - ADR’s price-earnings ratio is 2.3 compared to the industry median at 14.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Hywin Holdings Ltd - ADR more attractive for value investors.

Hywin Holdings Ltd - ADR’s price-to-book ratio is higher than its peers. This could make Hywin Holdings Ltd - ADR less attractive for value investors when compared to the industry median at 1.10.

You can read more about Hywin Holdings Ltd - ADR’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Logan Ridge Finance Corp’s Value Grade

Value Grade:

Logan Ridge Finance Corporation is a business development company. The Company?s investment objective is to generate both current income and capital appreciation through debt and equity investments. It offers customized financing to business owners, management teams and financial sponsors for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives. The Company invests in first lien loans, and, to a lesser extent, second lien loans and equity securities issued by lower middle-market and traditional middle-market companies. The Company invests in middle market businesses that operate across a range of industries, such as aerospace/defense, business services, consumer products, education, food and beverage, healthcare, industrial and environmental services, logistics and distribution, manufacturing, and media and telecommunications. The Company's investment advisor is Mount Logan Management LLC (Mount Logan).

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Logan Ridge Finance Corp has a Value Score of 66, which is considered to be undervalued.

Logan Ridge Finance Corp’s price-to-book ratio is higher than its peers. This could make Logan Ridge Finance Corp less attractive for value investors when compared to the industry median at 1.10.

You can read more about Logan Ridge Finance Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Trilinc Global Impact Fund LLC’s Value Grade

Value Grade:

TriLinc Global Impact Fund, LLC is focused on making investments in small and medium enterprises (SMEs). The Company's investment objectives are to generate current income, capital preservation, and modest capital appreciation primarily through investments in SMEs. It is engaged in SME trade finance and term loan financing. It invests in SMEs through local market sub-advisors in a diversified portfolio of financial assets, including direct loans, loan participations, convertible debt instruments, trade finance, structured credit, and preferred and common equity investments. It invests across various industries, including boatbuilding and repairing, chemicals and allied products, chocolate and cocoa products, coal and other minerals and ores, telephone communications, freight transportation arrangement, retail bakeries, sanitary paper products, land subdividers and developers, hotels and motels, among others. The Company's investment advisor is TriLinc Advisors, LLC.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Trilinc Global Impact Fund LLC has a Value Score of 61, which is considered to be undervalued.

Trilinc Global Impact Fund LLC’s price-to-book ratio is higher than its peers. This could make Trilinc Global Impact Fund LLC less attractive for value investors when compared to the industry median at 1.10.

You can read more about Trilinc Global Impact Fund LLC’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

UBS Group AG’s Value Grade

Value Grade:

UBS Group AG is a Switzerland-based holding company and conducts its operations through UBS AG and its subsidiaries. The company operates as a wealth manager with focused asset management and investment banking capabilities and a capital-light and cash-generative business model. The Company comprises four business divisions: Global Wealth Management, which provides tailored advice and solutions to its clients around the globe; Personal & Corporate Banking division provides comprehensive financial products and services to private, corporate and institutional clients in Switzerland; Asset Management division offers investment capabilities and styles across all traditional and alternative asset classes, as well as advisory support to institutions; Investment Bank provides investment advice, financial solutions and capital markets access to institutional, corporate and wealth management clients.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

UBS Group AG has a Value Score of 86, which is considered to be undervalued.

UBS Group AG’s price-earnings ratio is 3.6 compared to the industry median at 14.4. This means that it has a lower price relative to its earnings compared to its peers. This makes UBS Group AG more attractive for value investors.

UBS Group AG’s price-to-book ratio is lower than its peers. This could make UBS Group AG more attractive for value investors when compared to the industry median at 1.10.

You can read more about UBS Group AG’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Investment Management & Fund Operators Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Investment Management & Fund Operators stocks as well as other industrys.

Choosing Which of the 7 Best Investment Management & Fund Operators Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Associated Capital Group Inc stock has a Value Grade of B.
• BROOKFIELD ASSET MANAGEMENT LTD stock has a Value Grade of B.
• CaliberCos Inc stock has a Value Grade of B.
• Hywin Holdings Ltd - ADR stock has a Value Grade of A.
• Logan Ridge Finance Corp stock has a Value Grade of B.
• Trilinc Global Impact Fund LLC stock has a Value Grade of B.
• UBS Group AG stock has a Value Grade of A.

Now that you have a bit more background about each of the 7 undervalued stocks in the Investment Management & Fund Operators industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Investment Management & Fund Operators Stocks

Want to learn more about Investment Management & Fund Operators stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Investment Management & Fund Operators Stocks for Thursday, April 04
• 5 Undervalued Investment Management & Fund Operators Stocks for Wednesday, April 03
• Why Blue Owl Capital Inc’s (OWL) Stock Is Up 4.70%
• Why Noah Holdings Limited (ADR)’s (NOAH) Stock Is Up 7.80%

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