Alternative asset managers regain leadership status

Key points: 

• The S&P 1500 Asset Management sub-industry group triggered a new trend score buy alert
• Alternative asset managers have shown notable improvement, with KKR triggering a buy signal

Alternative asset managers join other capital market stocks with favorable trends

Last night, while reviewing stocks that were hitting absolute and relative highs for signs of an emerging theme, I noticed notable strength in the asset management sub-industry group, particularly among alternative managers such as KKR, Blackstone, Apollo, and The Carlyle Group.

Thanks to a marked improvement in alternative managers, the S&P 1500 Asset Management group triggered a new trend score buy signal.

With alternative asset managers, who invest and lend across a wide range of industries, now joining investment banks, brokers, and exchanges in showing favorable trends, the growing strength across the capital markets complex reinforces a bullish message for the broader market. 

Asset managers are once again exhibiting favorable momentum

The S&P 1500 Asset Management sub-industry group generated a trend score signal on Wednesday when it registered a 42-day absolute and relative high as both its trend and relative trend scores maintained a level of eight or higher.

KKR & Co., which has expanded beyond private equity to real estate, credit, hedge funds, insurance, and other capital markets dealmaking, triggered a trend score alert when it registered a 42-day absolute and relative high as both its trend and relative trend scores maintained a level of eight or higher.

A trend score alert may be imminent for Blackstone, the largest U.S. alternative asset manager, if its relative strength improves by another point and the stock records a 42-day high on both an absolute and relative basis. Stay tuned.

The Carlyle Group triggered a trend score signal on July 8. From the following day's open through the close on July 17, the stock rose 6.73%, significantly outperforming the S&P 500's 0.85% gain over the same period. Furthermore, the stock looks poised to register a new all-time high, surpassing the previous peak from 2021.

A favorable trend environment for the sector

The S&P 500 Financials sector exhibits the third-highest percentage of stocks with a trend and relative trend score of eight or higher, suggesting a favorable backdrop when compared to other sectors and the S&P 500.

What the research tells us...

Alternative asset managers have shown a notable improvement in trend conditions, marking a significant shift that aligns them with other groups within the capital markets complex, which are also exhibiting favorable momentum. This broadening of strength within the financial sector reinforces the overall bullish market environment, as healthy capital markets activity is often a sign of underlying economic stability. KKR & Co. has triggered a new trend score alert, joining The Carlyle Group, while Blackstone appears ready to follow with a signal of its own.