Look for Ares Management to Grow
Ares Management LP (NYSE:ARES) isn’t a household name, but you might want to consider it for your portfolio. It is actually a new public company, having undergone its IPO last month. The company just reported an earnings miss, but despite the miss, growth was stellar year over year and the stock is cheap. The company itself operates as an alternative asset manager in the United States, Europe, and Asia.
The company’s Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts for institutional investors, and publicly traded vehicles and sub-advised funds for retail investors in the tradable and non-investment grade corporate credit markets. Its Direct Lending Group segment provides financing solutions to small- to medium-size companies. The company’s Private Equity Group segment focuses on majority or shared-control investments primarily in under-capitalized companies.
Its Real Estate Group segment invests in new developments and the repositioning of assets, with a focus on control or majority-control investments, and originates and invests in a range of self-originated financing opportunities for middle-market owners and operators of commercial real estate. But why, in light of an earnings miss, am I recommending this stock? It is an undiscovered gem trading at only 7 times earnings on relatively low volume. Provided earnings continue to grow, the stock could rocket higher when it gets more exposure.