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No. of Recommendations: 1
Might as well post the rest of the Harris quote from 2016:

And yes, that's not the way that we are generally valued in the marketplace. So today both the alternatives and Apollo are kind of valued, in my opinion, too low. And I would say that the -- when you add the $1.00 to $1.10 that we're making in our management business to the $1.85 that we made over the last cycle -- so just make the math easy, $1.00 and $2.00, you're at $3.00 of cash flow over a cycle. And you've got a stock that trades at $16 a share.

Not exactly apples to apples comparison because of the implied future growth rate of management fees may be different now versus a couple of years ago, but here's a quick comparison.

Mid-2016 Harris: 1.10 management fee (FRE) / 16 APO stock = 6.8% management fee income yield

Late-2018 Black: "almost $2.00 FRE" - let's call it 1.70 mgmt fee / 24.85 APO stock = 6.8% management fee income yield.

So at $25 or so we've once again come around to Apollo trading at a pleasing FRE yield. In my opinion it's trading at too low a multiple of FRE given the growth and stability. Add the potential incentive income and balance sheet for free.

Can it go lower? Undoubtedly.

As the market and Apollo have gone down, the boys at Tiger Global added to their substantial position at $28 and below.

No problema, señor.

ET
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