What Makes Ares Management Corporation (ARES) a Long Term Investment?

Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Russell Midcap Growth Index fell 7.12% in the first quarter, starting with a continuation of the late 2024 rally but later experiencing a sharp decline. The Fund (Investor Shares) fell -9.98% (net of fees) in the quarter, compared to the Russell Midcap Growth Index’s -7.12% fall. Stock selection in Consumer Discretionary and Industrials contributed to the relative performance, while Communication Services and Health Care detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Parnassus Mid Cap Growth Fund highlighted stocks such as Ares Management Corporation (NYSE:ARES). Founded in 1997, Ares Management Corporation (NYSE:ARES) is an alternative asset manager. The one-month return of Ares Management Corporation (NYSE:ARES) was 4.69%, and its shares gained 28.63% of their value over the last 52 weeks. On July 3, 2025, Ares Management Corporation (NYSE:ARES) stock closed at $177.96 per share, with a market capitalization of $58.12 billion.

Parnassus Mid Cap Growth Fund stated the following regarding Ares Management Corporation (NYSE:ARES) in its Q1 2025 investor letter:

“We also added four competitively advantaged, highly profitable and market-share-gaining companies whose stocks had sold off due to what we view as transitory issues. Ares Management Corporation (NYSE:ARES) is a fast-growing alternative asset manager with a leading private credit franchise. We don’t know when the market will rebound, but we expect these new positions will lead the market higher whenever it does.

Ares is an alternative asset manager with a well-respected private credit franchise. The company’s long-term capital commitments, significant dry powder and fee-based earnings model provide the potential for high earnings growth over the next few years.”

Ares Management Corporation (ARES): Among Stocks with Insanely High PE Ratios Insiders Are Selling

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Ares Management Corporation (NYSE:ARES) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Ares Management Corporation (NYSE:ARES) at the end of the first quarter, which was 43 in the previous quarter. While we acknowledge the potential of Ares Management Corporation (NYSE:ARES) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Ares Management Corporation (NYSE:ARES) and shared the list of stocks with high PE ratios that are getting dumped by insiders. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of ARES as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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