For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Blackstone Group (
BX Quick Quote BX - Free Report) ten years ago? It may not have been easy to hold on to BX for all that time, but if you did, how much would your investment be worth today? Blackstone Group's Business In-Depth
With that in mind, let's take a look at Blackstone Group's main business drivers.
Headquartered in New York, The Blackstone Group Inc. is an asset manager of alternative investments and a provider of financial advisory services. As of Jun 30, 2021, total AUM was $684.03 billion.
The company operates its businesses through four segments: The Private Equity segment comprises management of private equity funds, collectively called the Blackstone Capital Partners (BCP) funds, along with energy and communications-related investments. Also, the segment includes Tactical Opportunities business, Strategic Partners Fund Solutions and Blackstone Total Alternatives Solution. As of Jun 30, 2021, segmental AUM was $223.62 billion. The Real Estate segment primarily comprises management of real estate funds called the Blackstone Real Estate Partners (BREP) funds. In addition, the segment has two other funds – Blackstone Real Estate Debt Strategies (BREDS) funds and Blackstone Property Partners (BPP) funds. As of Jun 30, 2021, segmental AUM was $207.55 billion. The Hedge Fund Solutions segment consists of Blackstone Alternative Asset Management (BAAM), an institutional solutions provider utilizing hedge funds across a variety of strategies. The segment’s AUM was $79.15 billion as of Jun 30, 2021. The Credit & Insurance segment includes senior credit-focused funds, distressed debt funds, mezzanine funds and general credit-focused funds concentrated in the leveraged finance marketplace. All these are managed by Blackstone’s subsidiary. As of Jun 30, 2021, segmental AUM was $173.71 billion.
In 2017, Blackstone acquired Aon's Technology-enabled HR Business and Harvest Fund Advisors LLC. In 2018, Blackstone, along with Canada Pension Plan Investment Board and GIC, acquired a majority stake in Thomson Reuters’ Financial & Risk business, and Clarus. In December 2020, the company acquired DCI.
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Blackstone Group a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in July 2011 would be worth $6,571.35, or a gain of 557.13%, as of July 28, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 237.31% and gold's return of 7.16% over the same time frame.
Analysts are anticipating more upside for BX.
Shares of Blackstone have outperformed the industry so far this year. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters. Its second-quarter 2021 results were primarily aided by growth in revenues. Blackstone remains well-poised to benefit from its fund-raising ability, revenue mix and inorganic expansion strategies. To provide ESG-focused investment opportunities, it inked a deal to acquire Sphera, while the buyout of DCI will further enhance its digital capabilities. Net inflows are expected to keep aiding assets under management (AUM) growth. However, elevated costs will likely hurt the bottom line to an extent. High debt levels along with lower chances of sustainability of the company’s capital deployment activities, given the volatile nature of its earnings, remain other key concerns.
The stock is up 15.42% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2021. The consensus estimate has moved up as well.