An investor’s ability to achieve financial goals is directly tied to how well they allocate their assets. Asset allocation refers to diversifying a portfolio by investing in different asset classes like stocks, bonds, and cash. For some investors, this can be tricky because they may not have access to as many stocks as they would prefer.
That is where a good asset management stock can come in handy. An asset management stock is any company that provides services such as portfolio maintenance, performance measurement, and risk management for another company or individual with investments but no time or interest in monitoring them daily.
But for active investors, the world of index funds and ETFs can feel like an echo chamber. That’s because the rise of passive investing has left few places for competent active managers to hide. Public markets are crowded with low-cost index funds, while new ETFs have made it easier to build a market-cap-weighted portfolio at a low cost. So, where can active investors go from here?
Analysts’ answer is tight-end investing, also known as asset management or AM stock. This strategy focuses on actively managing small baskets of stocks—typically between 10 and 30—in individual asset classes or companies that meet specific criteria. That means buying only the companies you like best; there’s no need to own everything in an industry or sector and weigh your portfolio with more excellent companies.
ArrowMark Financial Corp.
There was a significant decrease in the number of short positions taken on ArrowMark Financial Corp. during August (NASDAQ:BANX). As of July 31st, 1,700 shares were missing from the portfolio, but as of August 15th, only 1,000 shares were missing from the portfolio. The current short-interest ratio is 0.1 days, which can be determined by the average daily trading volume of 12,600 shares. This indicates that there is currently 0.1 days’ worth of shares on the market. On Friday morning, the price of a share of BANX was $19.75 when the market opened.
Over the previous year, ArrowMark Financial had a range of prices, with $17.32 being the company’s annual low and $24.19 being its annual high. The company’s moving average for the previous 200 days is $19.93, while the moving average over the previous 50 days is $18.59. The firm’s market capitalization is $140.21 million, and its price-to-earnings ratio stands at 25.32, while its beta value is 0.57. The most recent earnings report for ArrowMark Financial traded under the ticker symbol NASDAQ:BANX, was released on August 4th. The investment management company reported $0.43 in quarterly earnings per share for the period covered by the report.
The amount in question was $5.04 million, and it was the total revenue that the company recorded throughout the relevant period. In addition, the business just announced and paid a quarterly dividend, which was paid out on June 29th. Consequently, the dividend yield is calculated to be 7.90%, and the amount paid out annually is calculated to be $1.56. The payment of the dividend was made on June 21st, which was a Tuesday. ArrowMark Financial has an astoundingly high payout percentage of 200.00%.
The Chief Executive Officer of ArrowMark Financial, Sanjai Bhonsle, purchased 2,000 shares of the company’s stock on August 5th, as reported in other ArrowMark Financial-related news. It was found that the price of the shares, which were purchased for an average of $18.24 apiece, was $36,480.00. Because of the transaction, the company’s chief executive officer now directly owns 7,200 shares of the company’s stock. Based on the current stock price, this amounts to around $131,328. By releasing a legal document, which may be seen on the SEC website, the Securities and Exchange Commission (SEC) disclosed the transaction to the public.
Over the past three months and ninety days, members of management and other insiders of the company purchased 4,500 shares of stock for a total of $82,860. The company’s insiders hold ownership of 0.53% of the total number of shares outstanding. In recent months, several institutional investors, including hedge funds and other types of funds, have modified the stakes they already hold in the company. Bard Associates, Inc. boosted the amount of ArrowMark Financial stock owned by 9.7% during the first three months of 2018. The investment management company is worth $854 thousand, which is the value of the 39,715 shares of stock that Bard Associates Inc. now owns in the company. This comes from the increased purchase of 3,525 shares during the quarter.
Oxbow Advisors LLC increased its holding in ArrowMark Financial by 16.0% during the first three months of the year by purchasing new shares. During the relevant period, Oxbow Advisors LLC successfully acquired 3,561 shares of the investment management company’s stock. This brings the total number of shares it currently possesses to 25,777, with a value of $554,000. During the first three months of 2018, Advisor Group Holdings Inc. boosted the amount of ownership it had in ArrowMark Financial by 4.0 percentage points. Following the acquisition of a further 9,071 shares during the period under review, Advisor Group Holdings Inc. now holds 237,777 shares of the investment management company’s stock.
These shares have a combined value of $5,114,000.00. To establish a new stake in ArrowMark Financial, Cambridge Investment Research Advisors Inc. purchased about 322,000 more firm shares during the first quarter. Last but certainly not least, Millennium Management LLC raised its interest in ArrowMark Financial during the second quarter by contributing an extra $275,000 to the portfolio. Currently, 28.55% of the company’s shares are held in ownership by hedge funds and other institutional investors. ArrowMark’s information relating to the company’s financial situation StoneCastle Asset Management LLC is responsible for the management of the closed-end balanced mutual fund that goes by the name StoneCastle Financial Corp.
It does so by investing there, which gives it a foothold in the public equity markets that exist in the United States. Most of the fund’s assets are held in the common stock of various financial institutions and enterprises. This is accomplished by the company’s investment in dividend-paying growth and value stocks and other types of assets.
Liberty All-Star Equity Fund
In August, there was a significant decrease in the number of short positions held in the Liberty All-Star Equity Fund (NYSE:USA). Compared to the total number of 1,090,000 shares that were available for quick sale as of July 31, there were 784,600 shares available for a short sale as of August 15. This represents a decrease of 28.0% from the number of shares that were available for quick sale as of July 31. The current days-to-cover ratio is 0.8 days, which can be determined by the average daily trading volume of 950,200 shares. This ratio can be found by multiplying the daily trading volume by 100.
On Friday, the opening price of the U.S. stock was $6.59, which remained at that level throughout the day. The Liberty All-Star Equity Fund hit its all-time low of $5.86 twelve months ago, reaching its all-time high of $9.46 recently. The company has also announced a quarterly dividend, and the payment for that dividend will take place on September 6. The payment for the dividend is set to take place. On the record date of Friday, July 22, shareholders registered as having ownership of the company’s shares will be eligible to receive a dividend payment of $0.16 per share.
This results in a yield of 9.71% and a dividend payment of $0.64 each year. On Thursday, July 21, the dividend will be paid out to stockholders with accounts that were in good standing as of that day. Recently, several institutional investors have adjusted the number of shares in the firm they already own, either increasing their holdings or decreasing them. These investors have either increased their share count or decreased their share count. Nelson Van Denburg & Campbell Wealth Management Group LLC increased the proportion of its holdings allocated to the Liberty All-Star Equity Fund by 87.4 percent during the first three months.
During the most recent quarter, Nelson Van Denburg & Campbell Wealth Management Group LLC bought an additional 2,010 shares of the closed-end fund. This action brought the total number of shares the company had in the fund to 4,590. Because of this transaction, the corporation now possesses 4,310 shares of the company’s stock, and its current market value is $34,000. Captrust Financial Advisors made a new investment of $42,000 in the Liberty All-Star Equity Fund during the second quarter of the fiscal year. The investment firm Hazlett Burt & Watson, Inc. donated to the Liberty All-Star Equity Fund $62,000 during the first quarter of the fiscal year.
A $71,000 was made to the Liberty All-Star Equity Fund by Vigilare Wealth Management during the second quarter of the fiscal year. During the second quarter of the fiscal year, U.S. Capital Wealth Advisors LLC made a new investment of $71,000 in the Liberty All-Star Equity Fund. Currently, institutions control 12.62 percent of the total shares in the company. The Liberty All-Star Equities Fund was established and is presently managed by ALPS Advisers, Inc., responsible for the fund’s inception. The fund is an equity mutual fund that does not accept new investors.
Aristotle Capital Management, LLC, partners TCW Investment Management Company, Delaware Investments Fund Advisers, Sustainable Growth Advisers, LP, Pzena Investment Management, LLC, Aristotle Capital Management, LLC, and Aristotle Capital Management, LLC are involved in the management of the fund. Pzena Investment Management, LLC, Aristotle Capital Management, LLC, and Aristotle Capital Management, LLC also manage the fund.
