Is Apollo Global Management (APO)’s Shares Worth Your Money?

Miller Value Partners, an investment management firm, published its “Miller Income Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Miller Income Fund (Class I) returned 2.30% in the fourth quarter of 2021 versus 0.66% for its benchmark, the ICE BofA US High Yield Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Miller Value Partners Income Strategy, in its Q4 2021 investor letter, mentioned Apollo Global Management, Inc. (NYSE: APO) and discussed its stance on the firm. Apollo Global Management, Inc. is a New York, New York-based private equity company with a $42.6 billion market capitalization. APO delivered a -1.93% return since the beginning of the year, while its 12-month returns are up by 41.72%. The stock closed at $71.03 per share on February 2, 2022.

Here is what Miller Value Partners Income Strategy has to say about Apollo Global Management, Inc. in its Q4 2021 investor letter:

“Apollo Global Management (APO) rose 18.4% during the quarter. The company reported Q3 distributable earnings (DE) of $1.71, well ahead of consensus of $1.10 and the quarterly dividend of $0.50/share (2.8% annualized yield). Fee-related earnings of $300M beat by 7% while realized net performance fees of $312M topped estimates by 23%. Total assets under management (AUM) of $481.1Bn and fee-earning AUM of $361.3Bn both rose +2% sequentially on the back of robust capital raising with $18.1Bn of inflows over the period. Additionally, Apollo hosted their 2021 Investor Day, outlining long-term financial targets including over $9/share in distributable earnings by 2026 (14% Compound Annual Growth Rate (CAGR) from $5.50 pro-forma 2022E) and fee-related earnings of $4.50-$4.75 (18% CAGR). Management expects to roughly double AUM by 2026 to $1trn from $481Bn currently with a 2.25x increase in fee-related revenues to $4.6Bn.”

Our calculations show that Apollo Global Management, Inc. (NYSE: APO) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. APO was in 47 hedge fund portfolios at the end of the third quarter of 2021, compared to 37 funds in the previous quarter. Apollo Global Management, Inc. (NYSE: APO) delivered a -8.90% return in the past 3 months.

In September 2021, we also shared another hedge fund’s views on APO in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.