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2024

Are the StockRanks highlighting opportunities in fund managers?

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For much of the last few years, anyone betting on a recovery in fund manager stocks has been long and wrong, as the saying goes. That has included me at times.
For years, active managers have faced steady pressure on fees due to competition from cheap passive funds. More recently, most UK fund managers have also faced sustained outflows as investors have jumped ship to US equities or simply withdrawn from a lacklustre UK equity market.
However, the StockRanks are pointing to a number of potential opportunities in this sector, notably in two of the most unloved fund managers of all – Abrdn (LON:ABDN) and Jupiter Fund Management (LON:JUP).

I’ve been taking a closer look at both of these firms. I think this could be a case where the objective metrics powering the StockRanks are highlighting an opportunity that’s not yet being recognised by the wider market.
Despite the (many) good reasons to be cautious about these businesses, I think the investment case for each is worth exploring.
Abrdn (LON:ABDN)
Fund manager Abrdn is a traditional fund manager, but the group also has an Adviser platform...