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.

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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 Tuesday, October 24, 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.

Affiliated Managers Group, Inc.’s Value Grade

Value Grade:

Affiliated Managers Group, Inc. is a global independent investment management company. The Company is focused on investing in a diverse array of partner-owned investment firms, known as Affiliates. It offers its Affiliates growth capital, global distribution, and other strategic value-added capabilities. Its Affiliates provides a diverse range of differentiated investment strategies designed to assist institutional and wealth clients worldwide in achieving their investment objectives. Its Affiliates also provide investment management and customized investment counseling and fiduciary services to high-net-worth individuals and families and institutional clients. Its Affiliates distribute their investment services and products to institutional and wealth clients through direct sales and relationships with consultants and intermediaries around the world through their own business development capabilities. Its Affiliates manage assets for investors in over 50 countries.

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.

Affiliated Managers Group, Inc. has a Value Score of 74, which is considered to be undervalued.

When you look at Affiliated Managers Group, Inc.’s price-to-sales ratio at 2.05 compared to the industry median at 3.23, this company has a lower price relative to revenue compared to its peers. This could make Affiliated Managers Group, Inc.’s stock more attractive for value investors.

Affiliated Managers Group, Inc.’s price-earnings ratio is 5.18 compared to the industry median at 12.44. This means it has a lower share price relative to earnings compared to its peers. This could make Affiliated Managers Group, Inc. more attractive for value investors.

Now, let’s assess Affiliated Managers Group, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 12.3, when compared to the industry median of 16.3, 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. Affiliated Managers Group, Inc.’s shareholder yield is higher than its industry median ratio of 4.62%. 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. Affiliated Managers Group, Inc.’s price-to-book ratio is higher than its industry median ratio of 0.96. This could make Affiliated Managers Group, Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Affiliated Managers 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. Affiliated Managers Group, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 12.22. This could make Affiliated Managers Group, Inc. more attractive because the lower P/FCF ratio indicates that Affiliated Managers 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.

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 68, which is considered to be undervalued.

Blackstone Secured Lending Fund’s price-earnings ratio is 8.7 compared to the industry median at 12.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Blackstone Secured Lending Fund more attractive for value investors.

Blackstone Secured Lending Fund’s price-to-book ratio is lower than its peers. This could make Blackstone Secured Lending Fund fairly attractive for value investors when compared to the industry median at 0.96.

You can read more about Blackstone Secured Lending Fund’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.

Cion Investment Corp’s Value Grade

Value Grade:

CION Investment Corporation is an externally managed, non-diversified closed-end management investment company. The Company's investment objective is to generate current income and, to a lesser extent, capital appreciation for investors. The Company's portfolio is comprised primarily of investments in senior secured debt, including first lien loans, second lien loans and unitranche loans, and, to a lesser extent, collateralized securities, structured products and other similar securities, unsecured debt, and equity, of private and thinly traded United States middle-market companies. The Company's investment portfolio includes healthcare and pharmaceuticals, chemicals, plastics and rubber, high-tech industries, beverage, food and tobacco, capital equipment, banking, finance, insurance and real estate, aerospace and defense, construction and building, telecommunications, hotel, gaming and leisure, retail, and metals and mining. Its investment adviser is CION Investment Management, 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.

Cion Investment Corp has a Value Score of 65, which is considered to be undervalued.

Cion Investment Corp’s price-earnings ratio is 13.7 compared to the industry median at 12.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Cion Investment Corp less attractive for value investors.

Cion Investment Corp’s price-to-book ratio is higher than its peers. This could make Cion Investment Corp less attractive for value investors when compared to the industry median at 0.96.

You can read more about Cion Investment 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.

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 78, 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 0.96.

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.

Mentor Capital Inc’s Value Grade

Value Grade:

Mentor Capital, Inc. is an operating, acquisition, and investment business. The Company has investments in the medical marijuana, cannabis, energy, manufacturing, and management services sectors. The Company operates through two segments: Cannabis and Medical Marijuana Segment and Facilities Operations Related. The Cannabis and Medical Marijuana segment includes the operation of subsidiaries in the cannabis and medical marijuana sectors. The Company has a legacy investment in Waste Consolidators, Inc. (WCI), which works with business park owners, governmental centers, and apartment complexes to reduce their facility-related operating costs. WCI?s waste management and disposal services include waste consolidation, bulk item pickup, general property maintenance, and one-time clean-up services. The Company's subsidiaries include WCI, Mentor IP, LLC, Mentor Partner I, LLC, Mentor Partner II, LLC, and TWG, 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.

Mentor Capital Inc has a Value Score of 83, which is considered to be undervalued.

Mentor Capital Inc’s price-to-book ratio is lower than its peers. This could make Mentor Capital Inc fairly attractive for value investors when compared to the industry median at 0.96.

You can read more about Mentor Capital 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.

Silvercrest Asset Management Group Inc’s Value Grade

Value Grade:

Silvercrest Asset Management Group Inc. is a full-service wealth management company. The Company operates through the investment management industry segment. The Company is focused on providing financial advisory and related family office services to high-net-worth individuals and institutional investors. The Company offers a suite of complementary and customized family office services for families seeking oversight of their financial affairs. The Company provides a range of administrative services to the management of certain of its Company?s funds of funds and other investment funds collectively, the Silvercrest Funds. It also provides a range of family office services to some of its clients, including philanthropic, estate and wealth planning services, tax planning and preparation, financial statement, bill paying and record keeping services, bank loan arrangement and payment services, and property and casualty insurance review.

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.

Silvercrest Asset Management Group Inc has a Value Score of 66, which is considered to be undervalued.

Silvercrest Asset Management Group Inc’s price-earnings ratio is 13.0 compared to the industry median at 12.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Silvercrest Asset Management Group Inc less attractive for value investors.

Silvercrest Asset Management Group Inc’s price-to-book ratio is lower than its peers. This could make Silvercrest Asset Management Group Inc more attractive for value investors when compared to the industry median at 0.96.

You can read more about Silvercrest Asset Management 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.

Westwood Holdings Group, Inc.’s Value Grade

Value Grade:

Westwood Holdings Group, Inc. through its subsidiaries, manages investment assets and provides services. It provides investment advisory services to institutional investors, a family of mutual funds called the Westwood Funds, other mutual funds, individuals and clients of Westwood Trust. The Company?s segments include Advisory and Trust. The Advisory segment provides investment advisory services to corporate pension and profit-sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals, sub-advisory. It also provides investment management services to the Westwood Funds. The Company?s advisory business investment capabilities: United States Value Equity, Multi-Asset, Energy and Real Assets, Tactical Absolute Return, and Income Alternatives. The Trust segment provides trust and custodial services and participation in common trust funds that it sponsors to institutions and high-net worth individuals.

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.

Westwood Holdings Group, Inc. has a Value Score of 94, which is considered to be undervalued.

Westwood Holdings Group, Inc.’s price-to-book ratio is higher than its peers. This could make Westwood Holdings Group, Inc. less attractive for value investors when compared to the industry median at 0.96.

You can read more about Westwood Holdings 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.

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.

• Affiliated Managers Group, Inc. stock has a Value Grade of B.
• Blackstone Secured Lending Fund stock has a Value Grade of B.
• Cion Investment Corp stock has a Value Grade of B.
• CaliberCos Inc stock has a Value Grade of B.
• Mentor Capital Inc stock has a Value Grade of A.
• Silvercrest Asset Management Group Inc stock has a Value Grade of B.
• Westwood Holdings Group, Inc. 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 Tuesday, October 24
• 6 Undervalued Investment Management & Fund Operators Stocks for Monday, October 23
• Why AlTi Global, Inc’s (ALTI) Stock Is Down 4.39%
• Why Noah Holdings Limited (ADR)’s (NOAH) Stock Is Up 4.52%

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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.