Cohen & Steers: Growth Strategies and Investment Opportunities
2024-10-20
In a recent earnings call transcript of Cohen & Steers, a prominent asset management firm, several key topics were discussed by the company's executives. The call was led by CEO Joe Harvey, along with other key executives like Raja Dakkuri, John Cheigh, and Brian Heller. During the call, a cautionary statement was made regarding forward-looking statements, emphasizing the potential variance in outcomes due to various factors.
Cohen & Steers reported earnings of $0.77 per share and revenue of $133 million for the third quarter of 2024. The increase in revenue was attributed to higher average Assets Under Management (AUM). The operating margin improved to 35.7%, with total liquidity at the end of Q3 reaching $348 million.
The company highlighted factors contributing to the increase in AUM, such as market appreciation and net inflows. They also discussed expectations for the compensation ratio, G&A increase, and effective tax rate for the upcoming quarters. Additionally, the performance of AUM against benchmarks was detailed, with a focus on outperformance percentages over different time frames.
In terms of investment opportunities, Cohen & Steers focused on repriced real estate, particularly shopping centers, and listed infrastructure which outperformed equities in the recent quarter. The company also discussed the positive performance of preferred securities in the fixed income category and the investment case for infrastructure's attractiveness.
Looking ahead, Cohen & Steers aimed to leverage its expertise in listed private investments, active ETFs, and private real estate to reach a broader segment of the market. They planned to build better portfolios in infrastructure, citing abundant future investment opportunities in the sector. The company's strong track record and strategic initiatives positioned them well for continued growth and success in the asset management industry.
In conclusion, the earnings call provided valuable insights into Cohen & Steers' financial performance, strategic focus areas, and outlook for the future. With a strong leadership team and a clear vision for growth, the company remained well-positioned to capitalize on emerging opportunities and deliver value to its stakeholders.