tag:blogger.com,1999:blog-5389144729834496735.post8149030472666925951..comments2024-03-17T05:15:55.634-04:00Comments on The Brooklyn Investor: ARES: Ares Management, L.P. Unknownnoreply@blogger.comBlogger41125tag:blogger.com,1999:blog-5389144729834496735.post-2115038727803280862015-11-24T14:03:11.538-05:002015-11-24T14:03:11.538-05:00No new insights, particularly. These alternative ...No new insights, particularly. These alternative managers are all just getting killed. I am not as familiar with BDC's and credit products. There are a lot of things going on in the industry right now so maybe a basket of these will outperform over time. Despite a flat/unchanged stock market, there is really a lot of damage occuring beneath the surface, so it's a scary time. <br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-83699143595325114132015-11-22T20:13:03.625-05:002015-11-22T20:13:03.625-05:00Just wondering if you had any updated thoughts on ...Just wondering if you had any updated thoughts on Ares since the IPO? You mentioned you would want to follow the earnings call -- anything of note there? I do see Ares has been beaten up like many of the other alternative managers. ThanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-31179365299255423532014-11-06T23:00:32.519-05:002014-11-06T23:00:32.519-05:00anyone know why ARES has been so beaten up lately?...anyone know why ARES has been so beaten up lately? Has anything really changed?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-17769739393816488412014-06-24T18:13:08.829-04:002014-06-24T18:13:08.829-04:00I actually don't know too much about it so thi...I actually don't know too much about it so this is just my personal bias. First of all, I don't tend to like broker-driven high-fee businesses, and that's what I think annuities are. I do tend to think they are rip-offs with high fees and low returns for buyers. Yes, that's what they say about hedge funds and mutual funds too, but annuities I think is even more so. So it's hard to support a business where I don't even like the end product too much. Plus, I don't know what the moat there is either as I never really heard of annuities that do well or that don't do well. In mutual funds, we know who the good managers are etc... But in annuities? I don't think it's performance driven. I tend to think it's driven by brokers generating fees thanks to the ignorance of their clients. Not such a wonderful model. <br /><br />As for life insurance, again, where is the moat? Yes, credit rating and reputation matters But otherwise, I don't really understand the dynamics of competitive advantage. It seems like a straightforward thing with little room for 'edge'. For example, in P&C or reinsurance, there are companies that underwrite well and those that don't. There are those that manage assets well and others that just do OK. Some do both really well, others do underwriting really well but just own bonds. <br /><br />So there is a lot of 'color' in the business and you can make judgements about them. <br /><br />For life insurance, to me, it just all seems very blah to me and I have no idea about these factors. How can you create an edge in that business? I don't know. <br /><br />It doesn't mean it's a bad business, of course. <br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-9317211859687787902014-06-24T17:26:15.728-04:002014-06-24T17:26:15.728-04:00Can you share your general thoughts on the life in...Can you share your general thoughts on the life insurance / annuity business? What aspects of it makes you not a big fan?<br /><br />ThanksColin Leehttps://www.blogger.com/profile/08873635211698431518noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-88769966642155132822014-06-24T14:29:39.086-04:002014-06-24T14:29:39.086-04:00Hi,
I've looked at that in the past and it i...Hi, <br /><br />I've looked at that in the past and it is an interesting vehicle, but now it's just one asset, right? And it seems to be trading above NAV so I don't know what the story is here. This is not to say there isn't one. I don't know. I'm generally not a big fan of life insurance/annuity businesses. kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-18970371377138655322014-06-24T13:25:27.412-04:002014-06-24T13:25:27.412-04:00KK - have you looked at AP Alternative Assets (AAA...KK - have you looked at AP Alternative Assets (AAA)? <br /><br />AAA is run by Apollo. AAA's main asset is Aviva and other annuities business.<br /><br />Colin Leehttps://www.blogger.com/profile/08873635211698431518noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-41839145440226965462014-06-17T07:07:08.775-04:002014-06-17T07:07:08.775-04:00Thanks. I don't have much new to say about GL...Thanks. I don't have much new to say about GLRE and TPRE, but maybe I'll make an update. But both of them have really good presentations on their website. You can even listen to the GLRE investor day presentation audio file available at the GLRE website. <br /><br />The story is simple and is still the same. <br /><br />Thanks for reading. kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-60084811495322698352014-06-16T21:32:58.387-04:002014-06-16T21:32:58.387-04:00I can't tell you how much I enjoy and look for...I can't tell you how much I enjoy and look forward to your posts Brooklyn. Thank you. I would love to read in a blog post or a comment if you have any updated thoughts on GLRE and TPRE. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-67209252226996193852014-06-16T13:32:26.523-04:002014-06-16T13:32:26.523-04:00Hi,
Yes, the interesting thing about ARES is tha...Hi, <br /><br />Yes, the interesting thing about ARES is that as they say, most of their income is from management fees and not incentive income so their low p/e might be more "robust" or "real" than other private equity entities (including OAK) that had massive realizations (and unrealized) which may or may not be normal when the S&P 500 index went up 30%. <br /><br />So in that sense, ARES might be cheaper than the other ones that had a great 2013.kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-75923275120636500772014-06-14T13:03:18.829-04:002014-06-14T13:03:18.829-04:00actually, the pro-forma results look like this com...actually, the pro-forma results look like this company is doing well and making money. The PE is low and compared to the market very low.<br />if they institute a nice dividend this fall or winter, and continue to have good results it could be a nice stock to be in. I picked up a small amount around 18.36. Will buy more in a couple months.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-62222912573636941382014-06-11T15:26:16.581-04:002014-06-11T15:26:16.581-04:00Hi,
Not really. No surprises or anything. It d...Hi, <br /><br />Not really. No surprises or anything. It does look like they are ramping up for growth and that's a good thing. Expenses are up a bit but we'll see how revenues ramp up going forward. kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-47449874277167554322014-06-11T13:18:28.827-04:002014-06-11T13:18:28.827-04:00any comments on ARES 1Q14 cc?any comments on ARES 1Q14 cc?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-54337468339577379712014-06-03T00:01:24.912-04:002014-06-03T00:01:24.912-04:00Hi kk,
Thanks alot for the detailed response! It ...Hi kk,<br /><br />Thanks alot for the detailed response! It is very helpful.<br /><br />Regards,<br /><br />AhmedAnonymoushttps://www.blogger.com/profile/02095009884917863888noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-26774906353671456062014-05-31T22:14:03.325-04:002014-05-31T22:14:03.325-04:00Oh yeah, and I do remember him saying that he woul...Oh yeah, and I do remember him saying that he would use screens to look for ideas; EV/EBITDA, low P/E etc... He said that's what he would do if he had to look for ideas, but as I said before, he said he can't do that now because whatever comes up on the screen would probably be too small for him to buy for BRK, and the stocks that he can buy, he knows them well enough a screen wouldn't be necessary... kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-76515014502906516682014-05-31T22:10:42.450-04:002014-05-31T22:10:42.450-04:00Hi,
Probably all of the above, but these days, h...Hi, <br /><br />Probably all of the above, but these days, he probably doesn't do too much. Why? Because at his size, there are only 50 or 100 companies that are big enough for him to be able to buy meaningful amounts in. And you can be sure that he has been reading the annual reports for these companies every single year for decades. I bet the list is far larger than 100 names, but his investment candidates are going to be the largest cap stocks. <br /><br />So he is very familiar with most companies that would move the needle at BRK (in terms of stock purchases; I'm not talking about buying whole businesses). So it then just becomes a matter of these things trading at a low enough price. I'm sure Buffett keeps an eye on all the big cap names, but surely his brokers and others will alert him if something gets really cheap. <br /><br />As for how he used to look for stuff when he was far smaller, he has said that he just reads everything, from annual reports, to magazines, newspapers, trade magazines etc. <br /><br />He has said many times that he went through the Moody's handbook one company at a time (more than once). Today's version would be going through Value Line one page at a time, looking at the price, fundamentals, valuation etc...<br /><br />At the end of the day, it's just a lot of reading and digging and there are many ways to do that now with all this stuff online. <br /><br />He has said, in response to a similar question, that he gets good information and ideas just from reading the Wall Street Journal, New York Times, Fortune magazine etc... <br /><br />Anyway, those are just some things that come to mind that I remember Buffett saying over the years (when people asked him similar questions in the past). kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-54981242018821119292014-05-31T16:17:08.796-04:002014-05-31T16:17:08.796-04:00Hi kk,
I am a big fan for your work, I rank it as...Hi kk,<br /><br />I am a big fan for your work, I rank it as the among the top literature on value investing. I had a question about Mr. Buffet and didn't know who else to ask. After reading your blog I came to understand that Buffet relishes independence. My question is, how does he find his stocks? Is it through:<br /><br />1. Casually going through the names of stocks in the main stream media that might be mispriced;<br />2. value screens;<br />3. reading the annual reports of large cap stocks; or<br />4. all of the above.<br /><br />Lets say he reads the annual reports, does he then follow the stocks performance through a watchlist waiting for a bargain to present itself? <br /><br />I think the essence of my question is clearer now. I wanted to know how Buffet finds his ideas and keeps track of them. Answering this question would really be helpful!<br />Anonymoushttps://www.blogger.com/profile/02095009884917863888noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-34706195003105534272014-05-30T16:23:09.845-04:002014-05-30T16:23:09.845-04:00Thanks. I haven't seen that but I did already...Thanks. I haven't seen that but I did already read the LUK letter to shareholders. What other part of it did you want to highlight? Their views on rates staying low until late 2015 may help the ARES case as expertise is needed to earn higher yields in this extended low rate environment, and the high percentage of floating rate debt in some structures may be interesting for folks worried about rising rates. <br /><br />Thanks for commenting. <br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-43598405158662193892014-05-30T13:41:09.946-04:002014-05-30T13:41:09.946-04:00KK,
You probably have read this already.
Jefferie...KK,<br />You probably have read this already. <br />Jefferies Insight http://www.jefferies.com/CMSFiles/Jefferies.com/files/Insights/FI/JefferiesInsights_April2014.pdftonysfhttps://www.blogger.com/profile/03369169314019674429noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-28089195992327694922014-05-30T13:37:40.521-04:002014-05-30T13:37:40.521-04:00This comment has been removed by the author.tonysfhttps://www.blogger.com/profile/03369169314019674429noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-7719120884536271122014-05-27T15:03:54.699-04:002014-05-27T15:03:54.699-04:00Thank you and completely understand! Keep up the g...Thank you and completely understand! Keep up the great work - I truly enjoy reading this blog!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-45941453651021723052014-05-27T10:42:20.711-04:002014-05-27T10:42:20.711-04:00Oh yeah, and I forgot to mention that I wouldn'...Oh yeah, and I forgot to mention that I wouldn't consider ARES listed investment vehicles as liquid versions of classic 2/20 hedge funds. ARES funds are basically credit funds so not at all like a 'typical' hedge fund. kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-76090440161654483542014-05-27T10:39:50.424-04:002014-05-27T10:39:50.424-04:00Hi,
I have been following FIG since it's lis...Hi, <br /><br />I have been following FIG since it's listing and it is an interesting company and well run. But if you look at the performance figures in private equity, they don't seem to be doing too well compared to the others like CG, BX and APO. And I'm not really a big fan of macro hedge funds and that is one of their main strategies so I have to say FIG is not one of my favorites. They are really cheap, though, and the reason is probably what I just mentioned.<br /><br />As for ARES listed vehicles, there is a lot of information at the website. They seem to have good track records, and the returns are net of fees so you can make your own decision based on that. <br /><br />I don't (and never have) invest in fixed income funds at all so don't really have a good feel, but my impression was that these funds may not be bad ideas for people who want to allocate some capital to alternative fixed income. <br /><br />As far as I know, ARES management is well-regarded, and Y (Alleghany) owns a stake in ARES and ARES will manage a portion of Y's fixed income portfolio, so that's a good thing. Y is very conservative; I don't think they would buy a stake in ARES or have them manage some of their float without having done a lot of work. <br /><br />Thanks for reading. kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-91689547098484617952014-05-27T10:32:57.990-04:002014-05-27T10:32:57.990-04:00ARES is a limited partnership. It's basically...ARES is a limited partnership. It's basically an asset manager that manages funds and earns management and incentive fees. It is similar in structure to other alternative asset managers like OAK, BX etc... kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-48943861620201749782014-05-27T10:31:37.394-04:002014-05-27T10:31:37.394-04:00Hi,
Thanks for posting. This looks like an inte...Hi, <br /><br />Thanks for posting. This looks like an interesting and worthy project. I am flattered that you think a profile on this blog would provide exposure so thanks for thinking about this blog. <br /><br />Having said that, this blog is really a simple blog where I just type up what I think and some ideas and I don't want to get involved in profiling events and things like that (except for events that I just happen to go to on my own). <br /><br />Good luck!kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.com