The Biggest Buyers in the Market
It’s “time to shine” for investors, according to Apollo Global Management. The company is ploughing billions into markets, but not just stock markets. It also shows no signs of letting up!
Matt Nord and David Sambur are about as bullish as they come, moving money around at big private equity firm, Apollo. They say they’ve unearthed hundreds of mouth-watering opportunities to buy great businesses for great prices, defying the majority of investors who are still selling. They’re even looking for more dry powder to drive into new investments, but what kind of new investments?
A tenth of Apollo’s portfolio is travel-related, so the company really isn’t afraid of anything. Some core bets include Hilton Worldwide and Nielson, insiders saying “they’re really excited about” the bargains they see in tourism. Apollo’s other holdings are very diversified. The firm prefers small companies in finance, retail, chemicals, and communications.
While stock pickers construct their own portfolios, they still care about where Apollo is trading. Investors can piggy-back on Apollo’s stock to indirectly invest in the same companies, usually not listed on stock markets and otherwise unavailable.
Apollo also deals with a lot of distressed debt, meaning it takes “risky” loans off spooked lenders’ hands and earns plentiful rates of interest on those loans until, as they daringly predict, they’re paid back in full!
Invstrs are exercising caution when it comes to Apollo right now, fifteen per cent of the community short-sold on the name. However, analysts have reached a buying consensus, and have set a price target of $50. That’s 80% upside if Nord and Sambur’s contrarian sentiment doesn’t backfire, so could our community’s sentiment be about to swing?