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.

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.

Click the button below to learn more about A+ Investor and subscribe today.

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 Tuesday, May 30, 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.

Blackstone Secured Lending Fund’s Value Grade

Value Grade:

Blackstone Secured Lending Fund is a non-diversified, closed-end management investment company. The Company's investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation. It invests approximately 80% of its total assets in secured debt investments. The Company is focused on achieving its investment objectives primarily through originated loans and other securities, including syndicated loans, of private United States companies, typically in the form of first lien senior secured and unitranche loans (including first out/last out loans), and to a lesser extent, second lien, third lien, unsecured and subordinated loans and other debt and equity securities. The Company invests across various sectors, which includes Aerospace and Defense, Air Freight and Logistics, Building Products, Commercial Services and Supplies, and Health Care Providers and Services, among others. Blackstone Credit BDC Advisors LLC is the advisor of the Company.

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.

Blackstone Secured Lending Fund has a Value Score of 61, which is considered to be undervalued.

When you look at Blackstone Secured Lending Fund’s price-to-sales ratio at 4.43 compared to the industry median at 3.34, this company has a higher price relative to revenue compared to its peers. This could make Blackstone Secured Lending Fund’s stock less attractive for value investors.

Blackstone Secured Lending Fund’s price-earnings ratio is 9.59 compared to the industry median at 13.22. This means it has a lower share price relative to earnings compared to its peers. This could make Blackstone Secured Lending Fund more attractive for value investors.

Now, let’s assess Blackstone Secured Lending Fund’s EV/EBITDA ratio, also known as enterprise multiple. At 17.5, when compared to the industry median of 15.5, the company may be considered overvalued 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. Blackstone Secured Lending Fund’s shareholder yield is higher than its industry median ratio of 4.26%. 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. Blackstone Secured Lending Fund’s price-to-book ratio is lower than its industry median ratio of 1.07. This could make Blackstone Secured Lending Fund more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Blackstone Secured Lending Fund’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Blackstone Secured Lending Fund’s price-to-free-cash-flow ratio is lower than its industry median ratio of 11.05. This could make Blackstone Secured Lending Fund more attractive because the lower P/FCF ratio indicates that Blackstone Secured Lending Fund 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.

Chesapeake Granite Wash Trust’s Value Grade

Value Grade:

Chesapeake Granite Wash Trust (the Trust) is a statutory trust. The Trust is formed to own the producing wells and development wells (the Royalty Interests) for the benefit of the Trust unitholders. The Royalty Interests are derived from Chesapeake Energy Corporation's (Chesapeake's or the Trustor's) interests in the underlying properties, all of which are located within an area of mutual interest (the AMI) in the Colony Granite Wash play in Washita County in the Anadarko Basin of western Oklahoma. The Trust owns certain royalty interests in oil, natural gas liquids and natural gas wells in Washita County, Oklahoma producing from the Colony Granite Wash play within the broader Granite Wash formation of the Anadarko Basin. Its trustee is The Bank of New York Mellon Trust Company, N.A.

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.

Chesapeake Granite Wash Trust has a Value Score of 72, which is considered to be undervalued.

Chesapeake Granite Wash Trust’s price-earnings ratio is 4.0 compared to the industry median at 13.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Chesapeake Granite Wash Trust more attractive for value investors.

Chesapeake Granite Wash Trust’s price-to-book ratio is lower than its peers. This could make Chesapeake Granite Wash Trust more attractive for value investors when compared to the industry median at 1.07.

You can read more about Chesapeake Granite Wash Trust’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.

CI Financial Corp’s Value Grade

Value Grade:

CI Financial Corp. is a Canada-based diversified global asset and wealth management company operating in Canada, the United States, and Australia. The Company is engaged in the business of management, marketing, distribution, and administration of investment products for Canadian investors as well as providing financial advice, tax, retirement, estate, and wealth planning services. The Company's Asset Management segment includes asset management business in Canada, which operates under the brand CI Global Asset Management in addition to its asset management business in Australia. The Canada Wealth Management segment includes its wealth management operations in Canada which operate under the brands Assante Wealth Management, CI Private Counsel, CI Investment Services, CI Direct Investing, and Aligned Capital. The U.S. Wealth Management segment comprises 23 wealth management businesses that operate under the brand CI Private Wealth.

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.

CI Financial Corp has a Value Score of 91, which is considered to be undervalued.

CI Financial Corp’s price-to-book ratio is lower than its peers. This could make CI Financial Corp fairly attractive for value investors when compared to the industry median at 1.07.

You can read more about CI Financial 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.

Elron Ventures Ltd (USA)’s Value Grade

Value Grade:

Elron Electronic Industries Ltd. is an operational holding company that focuses on building and enhancing technology companies, mainly in the field of medical devices. Its group companies include companies at different stages of development and business maturation, operating in various technology fields, such as medical device and other fields. It is involved in the management of its group companies by means of membership and providing assistance to management. It operates in the Holdings and Corporate Operations segment. It is engaged in matters of policy guidance, strategic planning, marketing, selecting and manning senior management positions, determining the business plan, approving investments and budgets, development and operational guidance, assistance in creating strategic partnerships, and the overall ongoing monitoring of its group companies' performance. Its main group companies include BrainsGate Ltd, Pocared Diagnostics Ltd. and RDC Rafael Development Corporation Ltd.

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.

Elron Ventures Ltd (USA) has a Value Score of 90, which is considered to be undervalued.

Elron Ventures Ltd (USA)’s price-earnings ratio is 0.9 compared to the industry median at 13.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Elron Ventures Ltd (USA) more attractive for value investors.

Elron Ventures Ltd (USA)’s price-to-book ratio is higher than its peers. This could make Elron Ventures Ltd (USA) less attractive for value investors when compared to the industry median at 1.07.

You can read more about Elron Ventures Ltd (USA)’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.

Great Elm Group Inc’s Value Grade

Value Grade:

Great Elm Group, Inc. is an alternative asset management company. The Company is focused on growing a scalable and diversified portfolio of long-duration, permanent capital vehicles across corporate credit, specialty finance, real estate, and other asset classes. The Company and its subsidiaries manage Great Elm Capital Corp., a business development company, and Monomoy Properties REIT, LLC, an industrial-focused real estate investment trust, in addition to other investments. Its wholly owned subsidiaries include Great Elm Capital Management, Inc. (GECM), Great Elm Opportunities GP, Inc. (GEO GP), Great Elm Capital GP, LLC (GEC GP), Great Elm FM Acquisition, Inc. (FM Acquisition), Great Elm DME Holdings, Inc. (DME Holdings), Great Elm DME Manager, LLC (DME Manager), and Monomoy BTS Corporation (MBTS), among others.

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.

Great Elm Group Inc has a Value Score of 65, which is considered to be undervalued.

Great Elm Group Inc’s price-earnings ratio is 7.8 compared to the industry median at 13.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Great Elm Group Inc more attractive for value investors.

Great Elm Group Inc’s price-to-book ratio is higher than its peers. This could make Great Elm Group Inc less attractive for value investors when compared to the industry median at 1.07.

You can read more about Great Elm Group 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 0.5 compared to the industry median at 13.2. 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 1.07.

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.

Owl Rock Capital Corp’s Value Grade

Value Grade:

Owl Rock Capital Corporation is a specialty finance company. The Company invests in senior secured or unsecured loans, subordinated loans or mezzanine loans and, to a lesser extent, equity and equity-related securities, including warrants, preferred stock and similar forms of senior equity, which may or may not be convertible into a portfolio company?s common equity. Its investment objective is to generate current income, and to a lesser extent, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns. The Company has investments in approximately 184 portfolio companies. The Company consists of three divisions: Owl Rock, which focuses on direct lending; Dyal, which focuses on providing capital to institutional alternative asset managers; and Oak Street, which focuses on real estate strategies.

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.

Owl Rock Capital Corp has a Value Score of 61, which is considered to be undervalued.

Owl Rock Capital Corp’s price-earnings ratio is 8.4 compared to the industry median at 13.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Owl Rock Capital Corp more attractive for value investors.

Owl Rock Capital Corp’s price-to-book ratio is higher than its peers. This could make Owl Rock Capital Corp less attractive for value investors when compared to the industry median at 1.07.

You can read more about Owl Rock 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.

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.

• Blackstone Secured Lending Fund stock has a Value Grade of B.
• Chesapeake Granite Wash Trust stock has a Value Grade of B.
• CI Financial Corp stock has a Value Grade of A.
• Elron Ventures Ltd (USA) stock has a Value Grade of A.
• Great Elm Group Inc stock has a Value Grade of B.
• Jackson Financial Inc stock has a Value Grade of A.
• Owl Rock Capital Corp stock has a Value Grade of B.

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 Tuesday, May 30
• 4 Undervalued Investment Management & Fund Operators Stocks for Monday, May 29
• 7 Undervalued Investment Management & Fund Operators Stocks for Friday, May 26
• 3 Undervalued Investment Management & Fund Operators Stocks for Thursday, May 25

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.