Alts Continue to Struggle

As the prospect of rate cuts gets priced out of the market and the odds of hikes before year-end increase, publicly traded alternative asset managers involved in private equity and private credit have been hit hard again.  Software exposure also hurts, and as software stocks have reversed lower this month, so have alts.

Below is a look at six of the most well-known firms associated with private equity and private credit.  Four of five are back down 20%+ year-to-date again after falling sharply over the last week.  Blue Owl (OWL) is down the most this year with a 40% drop, followed by Carlyle Group (CG) at -27.4% and KKR (KKR) at -26.7%.  Ares (ARES) and Blackstone (BX) are both down 22%+, while Apollo Global (APO) is the one group member that’s down less than 10%.

Three of six are back in oversold territory and well below their 50-DMAs.  APO is the outlier among its peers when it comes to its 50-DMA, currently trading 1.2% above it.

Below are six-month price charts for the stocks listed above.  After a rough first quarter, they all managed to bounce back a bit in April.  APO has continued to make higher highs in Q2 and sits 25% above its March lows.  CG, on the other hand, quickly ran out of steam in late April and drifted lower in May, down to fresh 52-week lows.

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