Blackstone (BX) just posted its first monthly loss in more than three years for its flagship private credit fund. Even though the loss is small, it is symbolic for this market. Last year, companies like Tricolor, an auto lender, First Brand Group, and PrimaLend Capital Partners signaled issues ahead of Blackstone’s monthly loss.
BCRED posted a 0.4% loss in February. By comparison, the fund lost 1.3% in September 2022. Blackstone’s fund manages $82 billion. Credit quality worsened during that time. Unfortunately, investors do not know what risky sectors the fund holds, since it does not report its holdings in areas like software.
In the last six months, asset management stocks performed poorly. Price T. Rowe (TROW), Blackrock (BLK), KKR (KKR), Apollo Management (APO), and Ares Management (ARES) are notable companies that are down in the double-digit percentage.
The panic is unfounded in some cases. Apollo is strengthening its diversification strategy. On March 19, the firm formed a joint venture worth $1 billion with Realty Income (O), an REIT. Apollo will hold a 49% interest in the new JV. The portfolio will hold single-tenant retail properties with long-term net leases.
Investors who are bullish on retail REITs might consider EPR Properties (EPR). That stock fell from a $62 high to close at $50.46 last week.
