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Ares Management (ARES) Targetting Opportunities in Areas of Competitive Advantage

Ares Management Corp (NYSE:ARES) is one of the 10 best financial stocks with highest upside potential.

During a presentation at the RBC Capital Markets’ Global Financial Institutions Conference on March 11, Michael Arougheti, CEO of Ares Management Corp (NYSE:ARES), discussed the company’s strategic positioning and market outlook.

According to Arougheti, 25% of Ares’ growth history has resulted from acquisitions. The company focuses on growth opportunities in areas of competitive advantage and allows for autonomy of acquired businesses to maintain specialization. It is also committed towards addressing opportunities in the private credit, secondaries, real estate, and infrastructure sectors, through strong primary information advantages from thousands of investments worldwide.

Arougheti mentioned that the company’s current portfolio fundamentals are strong and that it is witnessing double-digit cash flow growth and zero percent non-accruals in its non-traded BDC with 900 borrowers. He also highlighted the Ares Charitable Foundation, which focuses on donating a significant percentage of performance income to philanthropy.

On February 24, RBC Capital analyst Bart Dziarski assumed coverage of Ares Management Corp (NYSE:ARES), who lowered the firm’s price target on the shares to $173 from $180. The analyst maintained an Outperform rating on the stock.

Dziarski noted that with about 65% of Ares’ managed assets tied to private credit, the company has been caught up in the broader negative sentiment surrounding the sector.

Ares Management Corp (NYSE:ARES) functions as a versatile alternative asset manager with expertise in direct lending, private equity, and real estate. The firm focuses on empowering middle-market companies and commercial real estate operators by providing tailored financing, growth capital, and strategic investment support across a wide range of global industries.

While we acknowledge the risk and potential of ARES as an investment, our conviction lies in the belief that some 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 ARES and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
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  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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