Asset managers are hot properties at the moment. Activist investor Nelson Peltz has taken stakes in
Janus Henderson Group,
pushing them to merge, while
has agreed to pay $7 billion for
One of the hottest in the industry should be AllianceBernstein. It offers a growth story and a nearly 9% yield.
“This is a unique company in the asset management industry,” says Alexander Blostein, an analyst at Goldman Sachs. “Not many companies are growing in the actively managed space.”
Yet AllianceBernstein generates little attention because of its partnership structure and thin public float. The public portion of the company,
(ticker: AB), owns 35%, while
(EQH), the life insurer, holds the other 65%. The partnership units, now around $30, trade inexpensively at 11 times projected 2020 earnings of $2.67 a unit and 10 times estimated 2021 profits of $3.01.