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Tower Research Capital Sells Majority of Ares Management Shares

2024-04-06 23:24:07.856000

Tower Research Capital LLC TRC has significantly reduced its holdings of Ares Management Co. (NYSE:ARES) during the 4th quarter, selling 9,712 shares and reducing its ownership by 91.7%. The firm now holds only 877 shares of Ares Management stock, valued at $104,000. Other institutional investors have also made changes to their positions in the company. Ares Management stock traded up $1.96 on Friday, reaching $134.16. The company has a market capitalization of $41.54 billion and a PE ratio of 56.13. Ares Management last reported quarterly earnings on February 8th, beating the consensus estimate with $1.21 EPS. The company also increased its quarterly dividend to $0.93 per share. Insiders have sold 872,206 shares of Ares Management stock valued at $116,269,037. Analysts have given Ares Management a consensus rating of 'Hold' with a target price of $123.45 [12b81ccf].

US investment firm Ares Management is actively seeking investment opportunities in China's loan market and SMEs. Ares Management, the largest alternative investment manager in Asia, sees significant growth opportunities in China's private capital market and is targeting the millions of small to medium-sized enterprises (SMEs) in the country. SMEs account for about 60% of China's GDP, making them an attractive prospect for Ares. The company believes that a combination of private capital firms, regulatory support, and business owner recognition will help develop the private-market ecosystem in China. Ares Management is particularly interested in the distressed property market, where it sees opportunities to restructure and recapitalize struggling developers. Despite the challenges in China's economy, Ares Management remains optimistic about the long-term trends and plans to continue building its capabilities in the country [546ffd22].

US investment firm Oaktree Capital Group is also actively seeking investment opportunities in China's loan market. Oaktree Capital Group, which has been investing in Chinese loans since 2015, is particularly interested in the real estate sector. The firm is open to making loans secured by attractive properties if the value of the collateral provides a margin of safety. Oaktree's investments in China primarily consist of loans from its distressed debt strategy, which oversees $45 billion globally. China also accounts for 40% of the firm's emerging markets equities strategy [26ca31f9].

Foreign financial companies with operations in China have a great opportunity to outperform their competitors due to the current pessimism about China's prospects. Thomas Cheong, Asia president of Principal Financial Group, believes that the barriers to entry in China are increasing for companies that have not yet invested in the country. Principal Financial Group, which has $651 billion in assets under management globally and several joint ventures with China Construction Bank, sees this as a favorable time for foreign financial companies to expand in China [fc6bdd74].

In other news, Greenwich Investment Management Inc. has reduced its position in Ares Capital Co. (NASDAQ:ARCC) by 11.3% in the 3rd quarter. The firm owned 419,708 shares of the investment management company's stock after selling 53,345 shares during the period. Ares Capital comprises approximately 6.5% of Greenwich Investment Management Inc.'s holdings, making the stock its 6th biggest holding. Other hedge funds also recently made changes to their positions in the company [77529274].

Ares Management Corporation has launched Ansley Park Capital, a new venture in the equipment financing sector. The company aims to fill a substantial gap in the market with its $400 million initial equity capital and targets originations potentially exceeding $3 billion. Ansley Park Capital focuses on large-ticket, essential-use equipment financing and is led by industry veterans Eric Miller, Mark Trollinger, and Robert Seltzer. The company aims to offer scaled, flexible capital solutions ranging from $5 million to over $100 million to a diversified client base across various industries. Ansley Park Capital also plans to form partnerships with banks for capital markets transactions, acquire equipment finance portfolios, and develop structured flow programs. The initiative aligns with Ares Management's commitment to innovative financial solutions and its societal impact goals. The establishment of Ansley Park Capital exemplifies the evolving dynamics of the finance industry and sets a new standard in equipment financing [f0ddbf5b].

Ares Commercial Real Estate (NYSE:ACRE) shareholders have experienced a 10% loss from investing in the stock five years ago. The stock has declined 49% over the past half-decade and 28% in the last 90 days. The company's earnings per share (EPS) have also declined, contributing to the falling share price. The CEO's remuneration is relatively modest compared to other CEOs in similarly capitalized companies. The total shareholder return (TSR) for Ares Commercial Real Estate is -10% over the last 5 years, with dividend payments explaining the divergence. While the broader market gained around 32% in the last year, Ares Commercial Real Estate shareholders lost 8.4%. Long-term share price weakness can be a negative sign, and there are 4 warning signs for Ares Commercial Real Estate that investors should be aware of. The article does not provide financial advice and Simply Wall St has no position in any stocks mentioned [aadeb62c].

Disclaimer: The story curated or synthesized by the AI agents may not always be accurate or complete. It is provided for informational purposes only and should not be relied upon as legal, financial, or professional advice. Please use your own discretion.