We recently compiled a list of the Jim Cramer on Taiwan Semiconductor, Netflix, and Other Stocks. In this article, we are going to take a look at where Blackstone Inc. (NYSE:BX) stands against the other stocks on Jim Cramer's list.
Jim Cramer, the host of Mad Money, recently expressed concern that some investors are overlooking potential market opportunities by fixating on the Federal Reserve's next moves regarding interest rates. He emphasized that, over the years, many in the investment community have become overly reliant on the Fed's actions rather than focusing on individual companies and their profitability.
Cramer said that he is an admirer of Fed Chair Jay Powell, but he recognizes the limits of the Fed's influence. He noted that while Powell wields significant power, he cannot dictate the performance of high-quality companies that are less affected by economic cycles. According to Cramer, when a company is not tied to the business cycle, it is less susceptible to the whims of the Fed. However, many traders still seem oblivious to this reality.
He highlighted that fear of the Fed often extends to stocks that appear pricey based on earnings multiples, particularly when investors worry that the Fed might have to abandon rate cuts to combat inflation. This fear, he noted, can drive investors away from promising sectors, like semiconductors. While Cramer acknowledges the importance of being aware of the Fed's actions, he insists that it should not become an obsession. He believes that although the Fed has considerable influence, it is not all-powerful.
He clarified that he does not claim the stock market will never decline during periods of Fed easing, but he maintains that there are limits to the Fed's impact.
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during his episode of Mad Money on October 17. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey's database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A financial advisor with a client discussing the merits of a mutual fund, showing the company's experienced advice in asset management.
Number of Hedge Fund Holders: 58
Cramer discussed Blackstone Inc.'s (NYSE:BX) position post-rate cutting and emphasized the brilliance of the company's leadership and the effectiveness of its strategies.
Blackstone (NYSE:BX) is a leading alternative asset management firm, with expertise in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity, and multi-asset class strategies. On October 17, the firm reported its financial results for the third quarter, which showed growth across various segments. Total revenue increased by 5% year-over-year, reaching $2.43 billion, largely driven by an influx of $40 billion in capital deployment.
Additionally, distributable earnings per share rose by 7%, hitting $1.01. The company's assets under management also reached an all-time high of $1.11 trillion, a 10% increase compared to the previous year. The rising value of its funds further shows the firm's effective investment strategies and strong market positioning.
For the future, Blackstone (NYSE:BX) management expressed a commitment to expanding into private wealth channels, alongside a focused approach toward infrastructure and credit markets in Asia.
Overall BX ranks 5th on our list of the stocks Jim Cramer is talking about. While we acknowledge the potential of BX 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 more promising than BX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.