Alternative Investment

What Makes Blackstone (BX) an Attractive Investment?

Baron Funds, an investment management company, released its “Baron Durable Advantage Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 5.0% (Institutional Shares) compared to a 4.9% decline for the S&P 500 Index. Holdings in Health Care, Industrials, and Consumer Staples contributed to the fund’s relative performance in the quarter, whereas holdings in Financials, Consumer Discretionary, and Information Technology detracted. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like Blackstone Inc. (NYSE:BX) in the Q3 2022 investor letter. Headquartered in New York, New York, Blackstone Inc. (NYSE:BX) is an asset management company. On November 15, 2022, Blackstone Inc. (NYSE:BX) stock closed at $97.61 per share. One-month return of Blackstone Inc. (NYSE:BX) was 11.25% and its shares lost 32.72% of their value over the last 52 weeks. Blackstone Inc. (NYSE:BX) has a market capitalization of $117.221 billion.

Baron Funds made the following comment about Blackstone Inc. (NYSE:BX) in its Q3 2022 investor letter:

“Share We also took advantage of a pullback in stocks to acquire shares of Blackstone Inc. (NYSE:BX), though as mentioned above, our timing could have been better. Blackstone is the largest alternative asset manager in the world with nearly $1 trillion of assets under management (AUM) and $700 billion of fee-earning capital. More importantly, 40% of Blackstone’s AUM is perpetual in nature and 90% of revenue is tied to capital that is perpetual or long term in nature. We have long admired Blackstone due to its strong brand, premier global franchise, loyal investor base, nearly 40-year superior investment track record, and talented executive team anchored by CEO Steve Schwarzman and President Jon Gray.

The company has been at the forefront of new product innovation, and we believe that Blackstone will continue to be the winner against an appealing industry backdrop with durable growth characteristics, underpinned by: i) a large and growing addressable market in alternative investments of $10 trillion today vs. $250 trillion for stocks and bonds; ii) institutions continuing to allocate increasing amounts of capital to alternatives (due to historical lower volatility and higher returns); and iii) the opportunity in the retail/high net worth channel that is less than 5% penetrated (versus approximately 30% for institutions)…” (Click here to read the full text)

15 biggest companies that aren't profitable

15 biggest companies that aren’t profitable

Pixabay/Public Domain

Blackstone Inc. (NYSE:BX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Blackstone Inc. (NYSE:BX) at the end of the second quarter which was 61 in the previous quarter.

We discussed Blackstone Inc. (NYSE:BX) in another article and shared the best income stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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