I rate AllianceBernstein Holding L.P. (NYSE: AB ) as a Buy, for capital appreciation focused investors who are looking for long-term buy and hold investments. AB will declare Q1 earnings on April 24 th and is widely expectedDavid A. Johnson is founder and principal of Endurance Capital Management, a New Jersey Limited Liability Company. As an investor entrepreneur, David invests in stocks, bonds, options, ETFs, REITs, real estate, closed end funds and alternative investment funds such as hedge funds and pri ...

Core Viewpoint - AB Science has received a Notice of Allowance for a US patent covering the use of masitinib in treating sickle cell disease, providing protection until November 2040, which enhances its intellectual property portfolio [1][3]. Company Overview - AB Science is a pharmaceutical company founded in 2001, specializing in the research, development, and commercialization of protein kinase inhibitors (PKIs) targeting diseases with high unmet medical needs [12][13]. Product Development - Masitinib is being developed as a treatment for severe forms of sickle cell disease, which accounts for approximately 65% of cases. The drug targets mast cells, which play a critical role in the disease's complications [3][4]. - The clinical development of masitinib in sickle cell disease is part of the SICKMAST collaborative program, which is funded with €9.2 million and aims to demonstrate efficacy in a phase 2 clinical trial [5]. Medical Need - Sickle cell disease is a significant public health challenge, with around 300,000 children born with the condition annually, potentially rising to 400,000 by 2050. The disease leads to early death and high social burden [6][10]. - Current treatment options do not fully prevent life-threatening complications, highlighting a significant medical need for effective therapies [10]. Scientific Insights - Masitinib has shown survival benefits in preclinical models, with treated mice experiencing no vaso-occlusive crises (VOC) or deaths, indicating its potential effectiveness [4]. - The drug acts as an inhibitor of key kinases involved in mast cell activation, which is crucial for addressing the inflammatory aspects of sickle cell disease [8][9].

NASHVILLE, Tenn., April 9, 2025 /PRNewswire/ -- AllianceBernstein L.P. ("AB") and AllianceBernstein Holding L.P. ("AB Holding") (NYSE: AB) today announced that preliminary assets under management decreased to $784 billion during March 2025 from $805 billion at the end of February. Net inflows across all three channels (Institutional, Retail and Private Wealth) were offset by market depreciation during March, resulting in a 2.6% decline in month-end AUM. For the quarter-ended March 2025, preliminary firmwide ...

NASHVILLE, Tenn., April 7, 2025 /PRNewswire/ -- AllianceBernstein L.P. and AllianceBernstein Holding L.P. (NYSE: AB) today announced that First Quarter 2025 financial and operating results will be released before the market opens on Thursday, April 24, 2025. Management will conduct a teleconference beginning at 9:00 am (CT), to discuss the results. The call will be hosted by Seth Bernstein, President and Chief Executive Officer; Thomas Simeone, Chief Financial Officer; and Onur Erzan, Head of Global Client ...

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Having worked in Risk Management and wearing the Risk lens for close to a decade, my judgment is ofte ...

Core Viewpoint - The comparison between AllianceBernstein (AB) and Carlyle Group (CG) indicates that AB presents a better value opportunity for investors at this time due to stronger earnings estimate revisions and more attractive valuation metrics [1][3][7]. Valuation Metrics - AllianceBernstein has a forward P/E ratio of 10.69, while Carlyle Group has a forward P/E of 10.81 [5]. - The PEG ratio for AB is 0.84, indicating a more favorable expected earnings growth rate compared to CG's PEG ratio of 1.07 [5]. - AB's P/B ratio stands at 2.09, compared to CG's P/B ratio of 2.60, suggesting that AB is more undervalued relative to its book value [6]. Analyst Outlook - AB holds a Zacks Rank of 2 (Buy), reflecting a more positive analyst outlook due to stronger earnings estimate revision activity, while CG has a Zacks Rank of 3 (Hold) [3][7]. - The Value grade for AB is B, indicating it is considered undervalued, whereas CG has a Value grade of C [6].

Core Insights - AllianceBernstein L.P. reported a decrease in preliminary assets under management (AUM) to $805 billion in February 2025, down from $809 billion at the end of January, marking a 0.5% decline driven entirely by market depreciation [1] - Firmwide net flows were flat in February, with net inflows into Private Wealth being offset by Institutional net outflows, while Retail flows remained unchanged [1] AUM Breakdown - As of February 28, 2025, the total AUM was $805 billion, with a breakdown as follows: - Total Equity: $333 billion, down from $342 billion in January - Total Fixed Income: $303 billion, up from $299 billion in January - Alternatives/Multi-Asset: $169 billion, slightly up from $168 billion in January [2][3] Channel Performance - Private Wealth AUM stood at $140 billion, unchanged from January - Institutional AUM decreased to $328 billion from $327 billion in January - Retail AUM decreased to $337 billion from $343 billion in January [3]

Core Insights - AB Science's lead compound, masitinib, is highlighted as a potential breakthrough treatment for progressive multiple sclerosis (MS) due to its unique mechanism of action targeting mast cells and microglia [1][2][3] - Professor Patrick Vermersch, a prominent neurologist, emphasizes the significant role of neuroinflammation in neurodegenerative disorders, including MS, and the importance of addressing the pro-inflammatory activity of mast and microglial cells [1][2] - Phase IIB/III trials of masitinib have shown promising results in reducing neuroinflammation and slowing disease progression, with further phase III data expected to clarify which patient groups may benefit most [3] Company Overview - AB Science, founded in 2001, specializes in the research, development, and commercialization of protein kinase inhibitors (PKIs) targeting diseases with high unmet medical needs [5][6] - The company is headquartered in Paris, France, and is listed on Euronext Paris under the ticker AB [6] - Masitinib has been registered for veterinary medicine and is being developed for human medicine in various fields, including oncology and neurological diseases [6]

Assets Under Management (AUM) - Total Assets Under Management (AUM) as of December 31, 2024, were $792.2 billion, an increase of $67.0 billion or 9.2% from the previous year, driven by market appreciation of $68.5 billion, partially offset by net outflows of $2.2 billion[201]. - Institutional AUM increased by $4.3 billion, or 1.3%, to $321.4 billion, primarily due to market appreciation of $20.7 billion, despite net outflows of $16.5 billion[202]. - Retail AUM rose by $47.5 billion, or 16.6%, to $334.3 billion, driven by market appreciation of $34.2 billion and net inflows of $13.4 billion[203]. - Private Wealth Management AUM increased by $15.2 billion, or 12.6%, to $136.5 billion, mainly due to market appreciation of $13.6 billion and net inflows of $0.9 billion[204]. - Total assets under management reached $792.2 billion as of December 31, 2024, up 9.2% from $725.2 billion in 2023[238]. - The total equity assets under management increased to $331.7 billion in 2024, a rise of 7.2% from $309.6 billion in 2023[238]. - The Institutional channel's average AUM rose to $322.9 billion in 2024, a 6.0% increase from $304.6 billion in 2023, while ending AUM increased by 1.3% to $321.4 billion[247]. - The Retail channel's average AUM reached $315.3 billion, a significant increase of 20.4% compared to $262.0 billion in 2023, with ending AUM at $334.3 billion[248]. - The Private Wealth Management channel's average AUM grew by 14.6% to $130.3 billion in 2024, with ending AUM at $136.5 billion, reflecting a 12.6% increase[249]. - Market appreciation contributed $68.5 million to the total assets under management in 2024, with $20.7 million from institutions and $34.2 million from retail[241]. - The company reported a net change of $67.0 billion in total AUM from December 31, 2023, to December 31, 2024[243]. Financial Performance - Net revenues for 2024 were $4.5 billion, an increase of $319.8 million, or 7.7%, compared to $4.2 billion in 2023, primarily due to higher investment advisory base fees and distribution revenues[206]. - Operating income increased by $306.4 million, or 37.5%, to $1.1 billion, with an operating margin rising to 24.7% from 19.1% in 2023[208]. - Net income attributable to AB Unitholders was $1.173 billion in 2024, reflecting a 53.4% increase from $764.6 million in 2023[224]. - For the year ended December 31, 2024, adjusted diluted net income per AB Holding Unit was $3.25, an increase from $2.69 in 2023, reflecting a growth of 20.8%[229]. - The company reported a net income of $423.4 million for the year ended December 31, 2024, compared to $264.2 million in 2023, representing a significant increase of 60.3%[229]. - Cash distributions to Unitholders increased by $45.1 million in 2024, totaling $340.5 million, compared to $294.0 million in 2023[233]. - The company recognized a gain of $128.5 million in contingent payment arrangements related to the acquisition of AB Carval in 2022[254]. - Total net revenues for 2024 increased by $319.8 million, or 7.7%, reaching $4,475.1 million compared to $4,155.3 million in 2023[282]. - Investment advisory and services fees rose by $466.7 million, or 15.7%, in 2024, driven by a $340.6 million increase in base fees and a $126.1 million increase in performance-based fees[288]. - Performance-based fees surged by $126.1 million, or 87.0%, in 2024, primarily due to higher fees from several funds, including the Financial Services Opportunities fund[289]. - Distribution revenues increased by $140.4 million, or 23.9%, in 2024, attributed to a 20.0% rise in average AUM of mutual funds[295]. Expenses and Costs - Total expenses for 2024 were $3,351,066,000, a slight increase of 0.4% from $3,337,653,000 in 2023[254]. - Higher base advisory fees contributed $340.6 million to the increase in net income for 2024[254]. - Employee compensation and benefits expense increased by $32.6 million, or 1.8%, in 2024, primarily due to higher incentive compensation of $92.9 million and higher commissions of $27.9 million[305]. - Promotion and servicing expenses increased by $119.7 million, or 13.9%, in 2024, driven by higher distribution-related payments of $132.1 million and higher amortization of deferred sales commissions of $21.2 million[308]. - General and administrative expenses increased by $17.6 million, or 3.0%, in 2024, with a percentage of net revenues at 13.4% compared to 14.0% in 2023[309]. - Interest expense decreased by $10.9 million in 2024, with average daily borrowings at $762.4 million and a weighted average interest rate of 5.3%[313]. - Income tax expense increased by $36.1 million, or 124.2%, in 2024, resulting in a higher effective tax rate of 5.2% compared to 3.6% in 2023[318]. Cash Flow and Liquidity - The net cash provided by operating activities for the year ended December 31, 2024, was $340.5 million, compared to $294.0 million in 2023, marking an increase of 15.8%[231]. - Net cash provided by operating activities was $1.4 billion in 2024, compared to $0.9 billion in 2023, primarily due to higher earnings of $312.5 million[322]. - Net cash used in investing activities was $115.7 million in 2024, compared to $33.6 million in 2023, mainly due to higher purchases of furniture and equipment[323]. - In 2024, net cash used in financing activities was $1.6 billion, an increase from $1.0 billion in 2023, primarily due to higher debt repayments of $608.6 million and cash distributions to Unitholders of $115.2 million[325]. - As of December 31, 2024, AB had $832.0 million in cash and cash equivalents, with $460.1 million held by foreign subsidiaries[326]. - Management believes cash flow from operations and debt issuance will provide adequate liquidity for financial obligations[328]. - AB's financial condition allows for adequate liquidity for general business needs, supported by access to public and private debt markets[328]. Strategic Initiatives - The joint venture with Societe Generale was completed on April 1, 2024, with AB retaining the Bernstein Private Wealth Management business[216]. - The joint venture with Societe Generale aims to enhance services for institutional investors, indicating a strategic market expansion[394]. - AB provides a broad range of investment services, including institutional, retail, and private wealth management, with a focus on ESG and alternative investments[394]. - AB's focus on sustainable and responsible investment strategies aligns with growing client demand for ESG-focused portfolios[394]. Ownership and Structure - The weighted average equity ownership interest in AB was 39.4% in 2024, slightly up from 39.2% in 2023[229]. - AB's ownership structure as of December 31, 2024, shows EQH and its subsidiaries holding 61.9%, AB Holding at 37.5%, and unaffiliated holders at 0.6%[395]. - AB Holding's investment in AB is recorded using the equity method, reflecting its share of AB's income and losses[398]. Market Conditions and Risks - The ability to access public and private capital markets may be limited by adverse market conditions and changes in credit ratings[355]. - The company's financial condition is subject to the performance of capital markets and the ability to maintain and grow client assets under management[355]. - A 10% decrease in equity prices would result in a $33,338,000 decrease in the fair value of other investments as of December 31, 2024[360].

Core Insights - AllianceBernstein L.P. and AllianceBernstein Holding L.P. reported a preliminary increase in assets under management (AUM) to $809 billion in January 2025, up from $792 billion at the end of December 2024, representing a 2% month-over-month growth driven by market appreciation and slightly positive firmwide net flows [1][2] Summary by Category Assets Under Management - As of January 31, 2025, total AUM reached $809 billion, with a breakdown of $327 billion in Private Wealth, $343 billion in Retail, and $139 billion in Institutions [2] - The total AUM for December 31, 2024, was $792 billion, indicating a growth of $17 billion in January 2025 [1][2] Performance by Channel - Net inflows were observed in the Retail and Institutional channels, while there were net outflows in the Private Wealth segment [1] - The increase in AUM was primarily attributed to market appreciation, highlighting the impact of market conditions on investment performance [1] Investment Strategy - The firm offers a diversified range of investment services, including actively managed and passive equity, fixed income, and alternatives/multi-asset solutions [2] - Total equity AUM was $342 billion, with actively managed equity accounting for $272 billion and passive equity for $70 billion [2]