Buy 5 Investment Management Stocks to Enrich Your Portfolio in 2025

Industry Overview - The investment management industry has experienced impressive growth, currently ranking in the top 20% of the Zacks Industry Rank [1] - The industry has provided a return of 38.8% over the past year and 38.9% year-to-date, outperforming the S&P 500 Index's return of 23.8% [2] Investment Opportunities - It is advisable to invest in investment management stocks with a favorable Zacks Rank to enhance portfolios in 2025 [3] - Five recommended stocks include BrightSphere Investment Group Inc. (BSIG), Janus Henderson Group plc (JHG), SEI Investments Co. (SEIC), KKR & Co. Inc. (KKR), and Federated Hermes Inc. (FHI) [3] Positive Catalysts - Global equity markets have performed well due to sustained economic growth, leading to solid asset under management (AUM) growth [4] - Falling interest rates are expected to drive investors from money market mutual funds into higher-yielding assets, further boosting AUM [4] - Deregulation is anticipated to open up the retirement market, contributing to increased AUM and improved performance fees for investment managers [5] Company-Specific Insights BrightSphere Investment Group Inc. (BSIG) - Expected revenue and earnings growth rates for 2025 are 6.6% and 12%, respectively, with an 8.2% improvement in earnings estimates over the last 60 days [10] Janus Henderson Group plc (JHG) - Expected revenue and earnings growth rates for 2025 are 9.6% and 11%, respectively, with a 5.8% improvement in earnings estimates over the last 60 days [12] SEI Investments Co. (SEIC) - Expected revenue and earnings growth rates for 2025 are 7.2% and 10.6%, respectively, with a 0.4% improvement in earnings estimates over the last 30 days [14] KKR & Co. Inc. (KKR) - Expected revenue and earnings growth rates for 2025 are 18.6% and 29.7%, respectively, with a 1% improvement in earnings estimates over the last 30 days [16] Federated Hermes Inc. (FHI) - Expected revenue and earnings growth rates for 2025 are 7.5% and 34.3%, respectively, with a 3.9% improvement in earnings estimates over the last 60 days [19]