The asset management industry plays a crucial role in global financial markets by managing investments for individuals, institutions, and corporations. Asset managers strategically allocate capital across equities, fixed income, real estate, and alternative investments, seeking to optimize returns while managing risk. The industry encompasses various segments, including mutual funds, hedge funds, private equity firms, and wealth management companies, each catering to different investor needs.

Recent research highlights the industry’s robust growth trajectory. According to PwC’s November 2024 Asset & Wealth Management Report, global assets under management (AUM) are expected to reach $171 trillion by 2028, reflecting a 5.9% compound annual growth rate (CAGR). Alternative assets, including private equity, hedge funds, and real estate, are projected to expand at an even faster 6.7% CAGR, reaching $27.6 trillion over the same period. As asset managers seek new growth avenues, tokenization is emerging as a transformative trend. PwC anticipates tokenized products will surge from $40 billion to over $317 billion by 2028, a 51% CAGR, as asset managers—particularly in private equity (53%), equity (46%), and hedge funds (44%)—embrace this innovation to democratize finance and lower investment barriers.

Amid these structural shifts, Deloitte’s 2025 Investment Management Outlook underscores the challenges firms face despite rising AUM in 2023. Revenue growth and profit margins remain under pressure, pushing firms to refine their product diversification strategies and distribution models. Key growth drivers include alternative investments like private credit and hybrid fund structures, as well as AI-driven sales and distribution technologies. Deloitte emphasizes that firms effectively implementing these initiatives will likely outperform competitors, while those failing to adapt may struggle to maintain their market position.

Another notable industry trend, according to Deloitte’s report, is the continued rise of exchange-traded funds (ETFs). Over the past five years, ETFs have attracted over $3 trillion in net inflows in the U.S., reflecting investors’ preference for low-cost, transparent investment vehicles. The majority of AUM in mutual funds and ETFs is concentrated in funds with lower expense ratios, contributing to ETFs’ growing market share at the expense of mutual funds. In 2023, active equity and bond ETFs maintained lower average expense ratios than their actively managed mutual fund counterparts, solidifying their appeal as cost-effective investment options.

In summary, the asset management industry is undergoing a period of transformation, driven by technological advancements, evolving investor preferences, and a shift toward alternative investments. While rising AUM signals strong long-term growth prospects, firms must adapt to shifting market dynamics by embracing diversified product strategies, AI integration, and tokenization.

With these insights in mind, let’s take a closer look at 10 cheap asset management stocks to buy now.

Our Methodology

To determine the 10 cheap asset management stocks to buy now, we first compiled a list of asset management companies using online screeners and financial media reports. We then narrowed down the selection to stocks trading at a forward price-to-earnings (P/E) ratio below 15 and offering at least 10% upside potential. From this refined list, we further narrowed down 10 top stocks with the highest hedge fund ownership, utilizing data from Insider Monkey’s Q4 2024 hedge fund database. Finally, we ranked the selected stocks in ascending order of their forward P/E ratios, placing those with the lowest valuations at the top.

Note: All pricing data is as of market close on March 19.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

10 Cheap Asset Management Stocks to Buy Now

10. Raymond James Financial Inc. (NYSE:RJF)

Forward P/E: 13.3

Upside Potential: 21%

Number of Hedge Fund Holders: 38

Raymond James Financial Inc. (NYSE:RJF) is a diversified financial services firm offering wealth management, capital markets, asset management, banking, and other services to individuals, corporations, and institutions. The firm’s total client assets are valued at $1.58 trillion.

As of February 28, 2025, the company’s assets under administration (AUA) were $1.58 trillion, reflecting a 12% year-over-year (YoY) increase. However, AUA experienced a 1% decline compared to January, primarily due to weaker equity markets in February, which was partially offset by modest net inflows.

Raymond James Financial Inc. (NYSE:RJF) announced its first-quarter 2025 results (FY ending in September) in January, reporting a 17% YoY growth in net revenue, which also rose 2% sequentially to $3.5 billion. The firm recorded an adjusted net income of $614 million, or $2.93 per share, marking a strong 22% YoY increase. Furthermore, the company’s financial performance saw improvement during the quarter, with its adjusted annualized return on tangible common equity (ROTCE) reaching 24.6%, compared to 23.8% in the same quarter of the previous year.

Following these strong Q1 results, BofA analyst Mark McLaughlin reaffirmed his Buy rating on the stock and raised the price target from $198 to $201. In addition to the robust quarterly performance, his optimistic outlook was supported by slightly higher capital markets revenue and net interest income. Consequently, the analyst increased his EPS projections for Q2, FY 2026, and FY 2027.

9. Ameriprise Financial Inc. (NYSE:AMP)

Forward P/E: 13.1

Upside Potential: 18%

Number of Hedge Fund Holders: 47

Ameriprise Financial Inc. (NYSE:AMP), a wealth and asset management firm with a 130-year history, offers financial planning, investment advisory, and insurance solutions. It operates its asset management segment under the Columbia Threadneedle Investments brand, managing assets through various investment strategies. The firm also provides retirement planning and annuities, serving a wide range of clients.

The company has achieved growth both organically and through strategic acquisitions. It ranks among the largest financial planning firms in the U.S. and is one of the 25 largest asset managers globally.

In Q4 2024, Ameriprise Financial Inc. (NYSE:AMP) delivered impressive results. Client activity and engagement were strong, with fee-based investment advisory account inflows reaching a record high. By the end of December, assets under management and advisement totalled $681 billion, reflecting a 3% year-over-year (YoY) increase. The firm’s adjusted operating EPS rose 23% YoY to $9.54 for the quarter, while its adjusted operating return on equity (ROE) reached 53%.

On February 10, Argus Research analyst Kevin Heal reaffirmed his Buy rating for Ameriprise Financial Inc. (NYSE:AMP) and raised the price target from $560 to $582. The analyst highlighted the company’s solid revenue growth in recent quarters, which was driven by positive net inflows, the expansion of its advisor network, and the continued growth of Ameriprise Bank. Despite some offset from equity and fixed-income market fluctuations, the analyst remains optimistic, citing expected momentum in Advice & Wealth Management, stable asset management operations, and ongoing share buybacks. As a result, the 2025 EPS forecast was revised upward from $38.5 to $38.84.

8. Northern Trust Corporation (NASDAQ:NTRS)

Forward P/E: 12.3

Upside Potential: 18%

Number of Hedge Fund Holders: 42

Northern Trust Corporation (NASDAQ:NTRS) is a financial holding company that operates through its subsidiaries, including The Northern Trust Company (Bank). It offers wealth management, asset servicing, asset management, and banking solutions to corporations, institutions, families, and individuals.

Ranked among the top 20 global asset managers, the company managed approximately $1.6 trillion in assets under management (AUM) as of December 2024. In Q4 2024, Northern Trust reported a significant improvement in its return on average common equity, which rose to 15.3% for the quarter and 17.4% for FY 2024, compared to 10% in 2023.

On March 10, BofA analyst Ebrahim Poonawala maintained his Buy rating on Northern Trust Corporation (NASDAQ:NTRS) but lowered the price target to $123 from $130. This adjustment reflects a broader reduction in price targets across the banking sector, averaging 6%, due to slowing growth and higher capital costs. While acknowledging risks of a possible recession, driven by declining equity markets and the associated “negative wealth effect,” the analyst emphasized that a recession is not their base-case scenario. Moreover, the analyst suggested that if the U.S. economy stabilizes and transitions into a period of stronger growth, it would be advantageous to increase exposure to leading banking institutions.

7. The Carlyle Group Inc. (NASDAQ:CG)

Forward P/E: 10.4

Upside Potential: 27%

Number of Hedge Fund Holders: 32

The Carlyle Group Inc. (NASDAQ:CG) is a global investment firm that focuses on private equity, credit, and real assets. Managing over $440 billion in assets under management (AUM), the company invests across various industries, including technology, healthcare, infrastructure, and financial services.

Renowned for its strong track record of value creation within portfolio companies, The Carlyle Group Inc. (NASDAQ:CG) benefits from long-term capital commitments that provide visibility into its earnings. In FY 2024, the firm deployed $43 billion in funds, marking a 48% increase from the $29 billion deployed in 2023. With rising investor interest in alternative investments, the company is well-positioned to capitalize on robust fundraising and capital deployment opportunities.

In their Q4 2024 Investor Letter, Portfolio Managers of Oakmark Fund (Harris Associates) commended The Carlyle Group Inc. (NASDAQ:CG)’s new leadership for taking effective measures to expand the firm’s focus beyond its private equity roots, paving the way for stronger organic growth. The company’s established brand and extensive distribution network further equip it to seize the increasing demand for alternative investment opportunities in the retail sector. Despite these promising developments and a positive growth trajectory, the portfolio managers noted that the company continues to trade at less than half the P/E multiple of its peers, presenting a notable discount compared to other financial services firms with similar growth potential.

Following the Q4 2024 results on February 11, a Barclays analyst reduced The Carlyle Group Inc. (NASDAQ:CG) price target from $60 to $55, while maintaining an Overweight rating on the stock. The analyst noted that the company’s fiscal 2025 performance was slightly softer than expected.

6. Janus Henderson Group plc (NYSE:JHG)

Forward P/E: 10.2

Upside Potential: 24%

Number of Hedge Fund Holders: 39

Janus Henderson Group plc (NYSE:JHG) is a global asset management firm offering actively managed investment solutions across equities, fixed income, and alternative strategies. The firm serves institutional, retail, and high-net-worth clients worldwide. As of end-December 2024, its AUM stood at $379 billion.

On February 24, UBS analyst Brennan Hawken upgraded Janus Henderson Group plc (NYSE:JHG) from Neutral to Buy, raising the price target from $45 to $50. The analyst noted that early signs of business improvement are emerging in key performance metrics, including a positive shift in net flows, a stable management fee rate, and expanding operating margins.

The analyst also highlighted that despite broader challenges in the asset management industry, the company is on a distinct growth trajectory, supported by its differentiated product lineup and strong presence in the retail market. These factors are expected to drive sustained organic growth in the coming years. The analyst considers the stock reasonably priced, given its potential for double-digit earnings growth.

5. Victory Capital Holdings Inc. (NASDAQ:VCTR)

Forward P/E: 10.0

Upside Potential: 16%

Number of Hedge Fund Holders: 21

Victory Capital Holdings Inc. (NASDAQ:VCTR) is a diversified global asset manager that provides specialized investment solutions to institutions, financial intermediaries, retirement platforms, and individual investors. Through its 11 autonomous Investment Franchises and a Solutions Platform, the company offers a wide range of investment products.

As of February 2025, Victory Capital Holdings Inc. (NASDAQ:VCTR) managed $176 billion in AUM and had $180 billion in total client assets. The company is in the process of finalizing its acquisition of the U.S. assets of Amundi Asset Management S.A.S., with the deal expected to close by the end of March. This acquisition is intended to broaden the company’s investment capabilities and enhance its U.S. intermediary distribution efforts, reinforcing its position in the asset management industry.

Victory Capital Holdings Inc. (NASDAQ:VCTR)’s strong financial performance has received positive reactions from analysts. On February 20, a BofA analyst raised the company’s price target from $88 to $89, maintaining a Buy rating after the company reported adjusted EPS of $1.45, surpassing expectations. The earnings beat was primarily driven by higher share repurchases and lower taxes, leading the analyst to revise EPS estimates upward for FY 2025, 2026, and 2027. Similarly, on February 10, a BMO Capital analyst increased the price target from $73 to $82, maintaining an Outperform rating. The analyst highlighted Victory Capital’s improving net flows, the strategic and financial benefits of the Amundi U.S. acquisition, and its consistent execution in margin expansion as key factors supporting a positive outlook.

4. State Street Corp. (NYSE:STT)

Forward P/E: 9.3

Upside Potential: 21%

Number of Hedge Fund Holders: 61

State Street Corp. (NYSE:STT) ranks among the world’s largest custodian banks and asset servicing firms, offering investment management, fund administration, and risk analytics solutions. Through its investment arm, State Street Global Advisors (SSGA), the company oversees an extensive portfolio of index funds and ETFs, including the SPDR series.

In 2024, State Street Corp. (NYSE:STT) was one of the largest asset management firms globally, with US$4.7 trillion in assets under management and US$46.6 trillion in assets under custody and administration. Alongside BlackRock and Vanguard, State Street is considered one of the Big Three index fund managers dominating retail investing.

On March 6, Morgan Stanley analyst Betsy Graseck reaffirmed her Overweight rating on State Street Corp. (NYSE:STT) but reduced the price target from $142 to $139 due to revised EPS estimates for 2025 and 2026, driven by lower fees and higher preferred dividends. Just days earlier, the analyst had raised the price target to $142 following the company’s announcement of its acquisition of Mizuho’s global custody and related businesses outside Japan.

The analyst had expressed optimism about the acquisition, anticipating that it would bolster State Street Corp. (NYSE:STT)’s position in the consolidating custody industry by increasing its scale. The acquisition aligns with the firm’s broader strategy to expand its international reach and effectively deploy excess capital. Although relatively small in scope, the deal underscores the potential for further cross-border transactions, strengthening the company’s competitive stance in the evolving global custody market.

3. Invesco Ltd. (NYSE:IVZ)

Forward P/E: 8.3

Upside Potential: 24%

Number of Hedge Fund Holders: 39

Invesco Ltd. (NYSE:IVZ) is a global investment management firm offering a diverse range of actively and passively managed funds, ETFs, and alternative investments. The company serves both retail and institutional clients across various asset classes and strategies.

Over the past decade, Invesco Ltd. (NYSE:IVZ) has more than doubled its assets under management (AUM) to $1.85 trillion as of December 2024, up from $780-$800 billion in December 2014/2015. Of the total AUM, approximately $1.27 trillion is attributed to retail operations, with the remainder coming from the institutional channel.

In its Q4 2024 results released in January, the company reported substantial net long-term inflows of $25.6 billion, representing a 7.8% annualized organic growth driven by ETFs and Index funds. Consequently, AUM at the end of the quarter rose 3% sequentially to $1.85 trillion. Revenue for the quarter reached $1.16 billion, reflecting a year-over-year (YoY) growth of 10.6%.

Despite positive momentum, the overall sentiment over asset management industry remains cautious, and analysts hold mixed opinions regarding Invesco Ltd. (NYSE:IVZ). The current consensus rating leans towards caution but still suggests a 1-year median price target upside of 24%. Supporting the firm’s optimistic outlook, TD Cowen analyst William Katz reaffirmed his Buy rating on the stock with a price target of $22 in a report published after the Q4 results. He reiterated the Buy rating again on March 12, emphasizing the company’s growth prospects.

2. Affiliated Managers Group Inc. (NYSE:AMG)

Forward P/E: 7.5

Upside Potential: 23%

Number of Hedge Fund Holders: 34

Affiliated Managers Group Inc. (NYSE:AMG) is a global asset management firm that operates through partnerships with high-quality independent partner-owned firms, which it refers to as ‘Affiliates’. Instead of managing money directly, the company provides financial support, strategic guidance, and access to a larger distribution network to its affiliated managers who specialize in different types of investments, such as stocks, bonds, and alternative assets. As of December 2024, the firm had $708 billion in assets under management.

In early February, an analyst from Barrington Research raised his price target on Affiliated Managers Group Inc. (NYSE:AMG) from $200 to $215 while maintaining an Outperform rating, following the company’s stronger-than-expected Q4 results. The analyst highlighted the company’s ongoing shift toward private markets and liquid alternatives, a strategy expected to drive long-term organic revenue and earnings growth. Despite a slight reduction in near-term earnings estimates, the analyst noted that AMG continues to trade at a discount compared to its peers.

Consensus 1-year median price target for Affiliated Managers Group Inc. (NYSE:AMG) currently stands at $210, implying a 23% upside.

1. Equitable Holdings Inc. (NYSE:EQH)

Forward P/E: 7.3

Upside Potential: 21%

Number of Hedge Fund Holders: 47

Equitable Holdings Inc. (NYSE:EQH) leads the list of asset management companies. As a financial services firm, it operates retirement, asset management, and affiliated distribution businesses. The company functions through its franchises, including Equitable and AllianceBernstein, which offer asset management and financial advisory services. Collectively, these franchises manage over $1.0 trillion in assets under management and administration.

The consensus outlook for Equitable Holdings Inc. (NYSE:EQH) remains largely positive, with multiple analysts raising their earnings estimates and price targets following the company’s strong Q4 2024 results announced in early February. On March 11, a Morgan Stanley analyst raised the price target for Equitable Holdings Inc. (NYSE:EQH) from $66 to $68, maintaining an Overweight rating. The analyst’s positive stance was supported by the fact that the company is strategically shifting from a reliance on capital-intensive annuities to a focus on capital-light asset and wealth management, a move anticipated to enhance earnings potential and elevate its valuation.

Earlier, on February 28, analysts from Keefe Bruyette also raised their price target for the stock to $66 from $62, reiterating an Outperform rating.

While we acknowledge the potential of EQH to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EQH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.