A hidden gem!
$Blackstone Group LP(BX)$ is the first alternative asset management to surpass 1 trillion AUM with good dividend yield and strong potential captial growth!!
How does Blackstone's generate its net profit? Blackstone has two primary revenue streams: management fees and performance fees. Management fees are typically a percentage of the total assets under management (AUM) and are charged regularly, providing a stable revenue stream, whereas performance fees are a share of the profits generated by the investments and are contingent on the success of the portfolio. Notably, it has $1 trillion total AUM and its fee-earning AUM is about $731.1 billion.
The unique point about Blackstone is that vast majority of their AUM today is under long-term contracts or even perpetual structures, helping them to avoid the large decreases in AUM experienced by many other money managers - which we have observed in current high interest environment. Their model also provides them the advantage of patience to buy assets, and the flexibility to sell when the time is right.
Blackstone has been paying around 85% of its EPS to its investors over the years! The president of Blackstone has predicted that the pain of inflation has peaked and that a year-long deal drought might soon come to an end. Its EPS forecast for the next quarter is around $1.08 and it is likely that its worst days might be over!!
EPS for year 2024: $5.97 (dividend ~ $5.07, around 4.7% for its current price of $108)
EPS for year 2025: $6.81 (dividend ~ $5.79, around 5.4% for its current price of $108)
Where else can you find a great stock with high dividend yield and high potential capital appreciation? Even Temasek has allocated money to Blackstone for long-term investment. Blackstone is the leading alternative asset management company and its ability to consistently grow its AUM even under such dire conditions should be applauded. I'm confident that its AUM should grow at an even faster pace when the interest rate starts to normalize.
Furthermore, it would join the $SPDR S&P 500 ETF Trust(SPY)$
$Nasdaq100 Bull 3X ETF(TQQQ)$
What do you think? Let me know your thoughts!
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Index funds would buy indirectly, you can buy in $110 and it’s a profit regardless
Won't last long folks. 10 year is going to 5% by year end. Inflation still out of control!
What is BX market cap fully diluted? Says 130 Billion but is that accurate?