Traditional Asset Managers At Ten Year Low Vs S&P 500

Stocks of traditional asset management companies have been slow movers compared to the broad market measured by the S&P 500 (INDEXSP:.INX) during the year so far. In fact, with the exception of banks, the performance of traditional asset managers has lagged most financial sub-sectors.

“While absolute valuations are near long-term averages, the relative multiple of the group versus the S&P sits at roughly a 20 percentage point discount to the 10 year average and nearly lows,” remarks Stern Agee analyst Jason Weyeneth in his 2Q 14 Preview of Traditional Asset Managers of July 8, 2014.

What could change

According to the analyst, the robust equity markets could lead to materially higher...