Jim Cramer Explains Why Ares Management, KKR and Apollo “Traded in Lockstep”

Ares Management Corporation (NYSE:ARES) is one of the S&P 500 stocks that Jim Cramer shared his take on. Cramer mentioned the stock during the episode and said:

How about the other group of big losers this month? Oh boy, the private equity firms with lots of private credit exposure. Ares Management was the third-worst performing in the S&P 500 for February, down 25.2%. KKR was the seventh worst, down 23.3, and Apollo Global was the 10th worst. It was down 22.3%. Now, these three private equity firms, all of which have a great reputation, reported very different results last month. Ares had a sizable earnings miss. KKR had a small miss. Apollo posted a nice beat.

But their stocks traded in lockstep, as like they were all the same because Wall Street’s convinced that they have too much exposure mostly to software stocks, even though they actually really don’t. When all is said and done, I think these concerns might prove to be overblown. All three of these stocks were up big today. It was kind of like February is over, let’s start buying them. I also don’t feel like trying to be a hero, though, when the private equity space is so hated.

A stock market graph. Photo by energepic.com

Ares Management Corporation (NYSE:ARES) is an alternative asset manager that provides financing and investment solutions for small to medium-sized companies. The company focuses on private equity, real estate, and direct lending.

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