Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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.

Latest Investment Management & Fund Operators Stock News

Before choosing which top Investment Management & Fund Operators stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

There is a neutral fundamental outlook for the investment management and fund operators’ sub-industry. The long-term outlook is relatively healthy due to aging populations. Demographic trends are also favorable, as millennials come of age and baby boomers play “catch-up” with contributions to IRAs, driving a significant increase in retirement investments, in our view. Millennials are also maturing and beginning to save for retirement. Many companies will also benefit from legislation enacted designed to encourage saving for retirement. However, the shift from actively managed funds to ETFs and pressures on fee revenues could slightly offset this. Recent market volatility has also impacted equity funds. Firms could benefit from rising interest rates. Growth in assets under management (AUM) is a key driver for many firms in this industry. 2022 projections anticipate high-single-digit AUM growth, though near-term market volatility amid shifting sector allocations will likely keep AUM levels under pressure. At year end 2021, assets in all worldwide open-end funds totaled $71.1 trillion, up 13% from $63 trillion at year end 2020. Equity assets (which rose 19 % in 2021, to $33.6 trillion) equaled 47% of total fund assets. Bond funds (which rose 4.6% in 2021, to $13.7 trillion) accounted for 19% of total fund assets. Money market accounts (which increased by 6.0%, to $8.8 trillion) represented 12% of total assets, and other funds (including real estate and balanced funds, equaled $15.6 trillion, or 22% of total fund assets at year-end 2021. A rebound in asset values amid an economic recovery propelled the S&P Asset Management & Custody Banks Index up by 31.9% during 2021, versus a 26.7% rise in the S&P 1500 Index. Year to date through March 18, 2022, the sub-industry index declined by 13.5%, while the S&P 1500 Index declined by 6.2%.

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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6 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 6 undervalued stocks in the Investment Management & Fund Operators industry for Tuesday, April 04, 2023. 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.

AMTD IDEA Group - ADR’s Value Grade

Value Grade:

AMTD IDEA Group, formerly AMTD International Inc, is an investment holding company principally engaged in the strategic investments. The Company operates its business through three segments. The Strategic Investment segment engages in proprietary investments and the management of investment portfolios mainly focusing on financial services and asset classes. The Investment Banking segment is involved in raising funds through equity and debt financing, providing underwriting for initial public offerings (IPOs), private placements and debt issuances and providing financial advisory services. The Asset Management segment provides asset management products and services, including in relation to listed equities, fixed income securities, hedge funds, structured products, foreign exchange, private equities, alternative investments, discretionary account services, investment advisory services and external asset management services.

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.

AMTD IDEA Group - ADR has a Value Score of 89, which is considered to be undervalued.

When you look at AMTD IDEA Group - ADR’s price-to-sales ratio at 0.98 compared to the industry median at 3.77, this company has a lower price relative to revenue compared to its peers. This could make AMTD IDEA Group - ADR’s stock more attractive for value investors.

AMTD IDEA Group - ADR’s price-earnings ratio is 0.61 compared to the industry median at 13.27. This means it has a lower share price relative to earnings compared to its peers. This could make AMTD IDEA Group - ADR more attractive for value investors.

Now, let’s assess AMTD IDEA Group - ADR’s EV/EBITDA ratio, also known as enterprise multiple. At 1.9, when compared to the industry median of 15.7, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

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. AMTD IDEA Group - ADR’s shareholder yield is lower than its industry median ratio of 3.98%. 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. AMTD IDEA Group - ADR’s price-to-book ratio is lower than its industry median ratio of 1.11. This could make AMTD IDEA Group - ADR more attractive to investors looking for a new addition to their portfolio.

GCM Grosvenor Inc’s Value Grade

Value Grade:

GCM Grosvenor Inc. is an alternative asset management solution company. The Company provides investment solutions to primarily institutional clients who seek allocations to alternative investments, such as hedge fund strategies, private equity, real estate, infrastructure, and strategic investments. It operates customized separate accounts and commingled funds. The Company collaborates with its clients to construct investment portfolios across multiple investment strategies in the private and public markets, customized to meet their specific objectives. The Company also offers specialized commingled funds which span the alternatives investing universe that are developed to meet market demands for strategies and risk return objectives. The Company offers private markets and absolute return investment strategies. Its private markets consist of private equity, infrastructure, and real estate as well as certain strategies that span the full breadth of the platform.

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.

GCM Grosvenor Inc has a Value Score of 78, which is considered to be undervalued.

GCM Grosvenor Inc’s price-earnings ratio is 26.8 compared to the industry median at 13.3. This means that it has a higher price relative to its earnings compared to its peers. This makes GCM Grosvenor Inc less attractive for value investors.

You can read more about GCM Grosvenor 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.

Jackson Financial Inc’s Value Grade

Value Grade:

Jackson Financial Inc. is a financial services company that helps to clarify the complexity of retirement planning for financial professionals and clients in the United States. The Company?s segments include Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The Retail Annuities segment offers a range of retirement income and savings products, consisting primarily of variable annuities, fixed index annuities, fixed annuities, payout annuities, and registered index-linked annuities. The Institutional Products segment consists of traditional guaranteed investment contracts, funding agreements and medium-term note funding agreements. The Closed Life and Annuity Blocks segment includes various protection products, such as whole life, universal life, variable universal life, term life insurance products, fixed index, and payout annuities. The Company?s products include Jackson Market Link Pro and Jackson Market Link Pro Advisory.

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.

Jackson Financial Inc has a Value Score of 100, which is considered to be undervalued.

Jackson Financial Inc’s price-earnings ratio is 0.6 compared to the industry median at 13.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Jackson Financial Inc more attractive for value investors.

Jackson Financial Inc’s price-to-book ratio is higher than its peers. This could make Jackson Financial Inc less attractive for value investors when compared to the industry median at 1.11.

You can read more about Jackson Financial 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.

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. 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. 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 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 81, 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 1.11.

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.

BlackRock TCP Capital Corp’s Value Grade

Value Grade:

BlackRock TCP Capital Corp. is a specialty finance company. It is focused on direct lending to middle-market companies as well as small businesses. It lends to companies with established market positions and differentiated products and services. The Company’s investment objective is to achieve high total returns through current income and capital appreciation. It invests primarily in the debt of middle-market companies as well as small businesses, including senior secured loans, junior loans, mezzanine debt, and bonds. Its investment portfolio consists of approximately 132 portfolio companies. It invests in various industries, including aerospace and defense, airlines, automobiles, building products, capital markets, commercial services and supplies, communications equipment, construction and engineering, consumer finance, containers and packaging, distributors, electric utilities, health care technology, hotels, restaurants and leisure, insurance, Internet and catalog retail.

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.

BlackRock TCP Capital Corp has a Value Score of 70, which is considered to be undervalued.

BlackRock TCP Capital Corp’s price-to-book ratio is higher than its peers. This could make BlackRock TCP Capital Corp less attractive for value investors when compared to the industry median at 1.11.

You can read more about BlackRock TCP Capital 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.

Victory Capital Holdings Inc’s Value Grade

Value Grade:

Victory Capital Holdings, Inc. is a diversified asset management firm. The Company is focused on providing specialized investment strategies to institutions, intermediaries, retirement platforms, and individual investors. It has approximately 12 autonomous investment franchises and a solutions platform, Victory Capital, which offers a range of investment products, including actively and passively managed mutual funds, rules-based and active exchange traded funds (ETFs), institutional separate accounts, variable insurance products (VIPs), Environmental, Social, and Governance (ESG) and impact investment strategies, alternative investments, private closed end funds, and a 529 Education Savings Plan. It also offers its Victory Capitals strategies through third-party investment products, including mutual funds, third-party ETF model strategies, retail separately managed accounts (SMAs) and unified managed accounts (UMAs). Its investment adviser is Victory Capital Management Inc.

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.

Victory Capital Holdings Inc has a Value Score of 70, which is considered to be undervalued.

Victory Capital Holdings Inc’s price-earnings ratio is 7.7 compared to the industry median at 13.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Victory Capital Holdings Inc more attractive for value investors.

Victory Capital Holdings Inc’s price-to-book ratio is lower than its peers. This could make Victory Capital Holdings Inc more attractive for value investors when compared to the industry median at 1.11.

You can read more about Victory Capital Holdings 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.

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 6 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.

• AMTD IDEA Group - ADR stock has a Value Grade of A.
• GCM Grosvenor Inc stock has a Value Grade of B.
• Jackson Financial Inc stock has a Value Grade of A.
• Logan Ridge Finance Corp stock has a Value Grade of A.
• BlackRock TCP Capital Corp stock has a Value Grade of B.
• Victory Capital Holdings Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Investment Management & Fund Operators Stocks for Tuesday, April 04
• Which Is a Better Investment, Ameriprise Financial, Inc. or Apollo Global Management Inc Stock?
• Which Is a Better Investment, Apollo Global Management Inc or Bank of New York Mellon Corp Stock?
• Which Is a Better Investment, Apollo Global Management Inc or BlackRock Inc Stock?

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