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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.

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: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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

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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.

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  • 140 Metas
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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.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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