BUZZ - Oppenheimer says alternative asset management company stocks are highly attractive
October 20 - ** Oppenheimer analyst Chris Kotowski stated that the selloff of alternative asset management company stocks has been excessive. Given the continued industry fundamentals, these stocks are highly attractive for investment.
** The brokerage noted that although macro narratives have never truly become a key factor affecting the fundamentals of alternative asset management company stocks, such narratives have repeatedly brought significant volatility to the market for these stocks.
** He added that interest rate hikes will not change the fundamental business conditions of the industry, nor will they affect investors' willingness to allocate funds for future fundraising.
** "A very good example is the period between 2015 and 2016, when falling oil prices led to a substantial widening of high-yield bond spreads, and these stocks declined by 42%. We recall someone telling us at that time that this destroyed the private equity business model, but in reality, it only had a mild and brief impact on the business," said Kotowski.
** Private capital is highly attractive for both investors and issuers—brokerage firm.
** "Although the process is tough, we are confident this is not the first time experiencing such situations, and this presents an excellent buying opportunity for the sector," Kotowski said.
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