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This top alternative asset manager is proving valuable to its investors
Investors had a historically awful first half of this year. The S&P 500 (^GSPC) plummeted 16% in the second quarter and 20% in the first half of the year.
Awful market situations are usually negative for asset managers since investors tend to withdraw cash. This has not been the case for Blackstone Inc. (BX), the world's largest alternative asset manager. It generated excellent second quarter earnings, owing to its better performance. This allowed the corporation to accrue management and performance fees, the majority of which it paid to investors in the form of a sizable dividend.
While the stock and bond markets performed poorly for investors in the first half of 2022, BX's investment vehicles performed far better.
Overall, BX's real estate strategies increased by 9% to 10% in the first half, compared to a 20% decrease in the REIT index. Meanwhile, its asset management division posted positive returns in the second quarter and 1.8% growth in the first half, outperforming public markets significantly. "In low markets, this is exactly what BX's asset management solutions are supposed to accomplish,"
This robust performance enabled BX to produce more than $2 billion in distributable earnings ($1.49 per share) for its investors in the second quarter, the company's second best quarter ever, thanks to a 45% increase in fee-related earnings and record realizations. The majority of the earnings were transferred to shareholders in the form of a dividend, which paid $1.27 per share in the second quarter. This boosted its total dividend over the last year to $5.13 per share, representing an annualized yield of more than 5% on the current stock price.
Established in 2015 and headquartered in Hong Kong, Enbridge International Consulting Limited is an independent boutique asset management Firm committed to serving retail and institutional investors as well as affluent high net worth individuals. As a boutique Firm, our ability to offer customized financial advice is second only to the vast variety of financial products and services at our disposal. We focus on investment vehicles that deliver significant appreciation and an absolute sustainable return. Please visit our website https://enbridgeconsulting.com/