Vulcan Value Partners: Ares Management Corporation (ARES) is One of the Highest-Quality Alternative Asset Managers

Investment management company Vulcan Value Partners recently released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The firm does not focus on short-term outcomes, whether positive or negative, and believes it can enhance the potential long-term returns and reduce risk. In the quarter, the Large Cap Composite returned 7.0% net of fees and expenses, the Small Cap Composite returned 6.7% net, the Focus Composite returned 9.5% net, the Focus Plus composite returned 8.8% and the All-Cap Composite returned 8.1% net. For more information on the fund’s best picks in 2025, please check its top five holdings.

 In its second quarter 2025 investor letter, Vulcan Value Partners highlighted stocks such as Ares Management Corporation (NYSE:ARES). Founded in 1997, Ares Management Corporation (NYSE:ARES) is an alternative asset manager. The one-month return of Ares Management Corporation (NYSE:ARES) was 7.52%, and its shares gained 22.07% of their value over the last 52 weeks. On July 16, 2025, Ares Management Corporation (NYSE:ARES) stock closed at $179.92 per share, with a market capitalization of $58.758 billion.

Vulcan Value Partners stated the following regarding Ares Management Corporation (NYSE:ARES) in its second quarter 2025 investor letter:

"Ares Management Corporation (NYSE:ARES) is a global, diversified alternative asset manager with a leading private credit franchise. Market sentiment began turning negative during the first quarter of this year and bottomed out during the tariff related sell off in early April. We added to our position during this time. Ares is unique within the alternative space as they have a history of growing more quickly during times of dislocation. There are many reasons for this growth but some of the most important are the defensiveness of credit and Ares’s ability to play offense in down markets. We continue to view the alternative asset management industry positively due to long-term secular growth tailwinds and long-term locked up capital that leads to annuity-like fee streams. We believe Ares is one of the highest quality alternative asset managers and has one of the best combinations of value stability and value growth in the industry."

Ares Management Corporation (NYSE:ARES) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Ares Management Corporation (NYSE:ARES) at the end of the first quarter, which was 43 in the previous quarter. While we acknowledge the potential of ARES as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Ares Management Corporation (NYSE:ARES) and shared the list of best fast growth stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.