Artisan Partners Asset Management (APAM)
With approximately $97 billion in assets under management, Artisan Partners Asset Management (APAM) uses a decentralized and autonomous investment style that has made it very successful among asset managers. The stock went public in March 2013 at $30 per share, so investors who still held at the end of December were sitting on unrealized gains of 117% in just 10 months. That’s good in anybody’s book.
So what makes APAM stock so special? Quite simply, it has built its business upon a consistent philosophy and business model — those words are taken straight from the APAM Q3 investor presentation. While it might sound like hyperbole, the performance of APAM stock suggests otherwise.
Lipper ranks 93% of its assets under management in the first quartile, and Morningstar gives at least a four-star rating to 91% of its AUM. Anyone who has money with them probably isn’t looking for other asset managers to handle their money. Shareholders aren’t doing half bad either.
The key to all successful asset managers is asset gathering … or as they like to call it in the business, “net client cash flows.” In the third quarter, APAM grew its inflows by $2.1 billion, an annualized organic growth rate of 9.7%., right up there with WisdomTree.
Even though APAM stock has been hitting its 10-month high in recent days, its yield is still 2.6% — 50 basis points higher than BLK, WDR and WETF. If you like asset managers that handle big chunks of institutional money while still playing the retail mutual fund game, this is the smart choice.