What Happened?
A number of stocks jumped in the afternoon session after investors rotated out of AI and chip stocks and into financial names that had lagged during the technology bull run.
Blackstone surged 8%, shaking off news that it had begun limiting withdrawals from its Private Credit fund, as investors looked through the headline to the firm's durable fee-income base. Ares Management and KKR each gained 6% in sympathy. The move reflects a broader re-rating of alternative asset managers.
Firms like Blackstone, KKR, and Ares generate management and performance fees that are largely insulated from rate direction and tied instead to deployment activity, asset values, and institutional capital flows — all of which remain healthy. With capital markets active, IPO pipelines rebuilding, and M&A picking up, diversified financial names offer a different quality of earnings growth from the valuations embedded in technology stocks.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Asset Management company TPG (NASDAQ: TPG) jumped 4%. Is now the time to buy TPG? Access our full analysis report here, it’s free.
- Asset Management company Ares (NYSE: ARES) jumped 5.6%. Is now the time to buy Ares? Access our full analysis report here, it’s free.
- Asset Management company Blackstone (NYSE: BX) jumped 7.9%. Is now the time to buy Blackstone? Access our full analysis report here, it’s free.
Zooming In On Blackstone (BX)
Blackstone’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 5.1% on the news that Switzerland's Partners Group disclosed it had capped quarterly redemptions on its $8.6 billion Global Value SICAV private equity fund, as withdrawal requests surged.
Partners Group shares fell approximately 17% in Zurich, their biggest intraday drop on record. The contagion spread immediately: Blackstone fell more than 5%, KKR dropped more than 5%, Ares Management lost approximately 4%, and Blue Owl Capital declined nearly 5%.
A separate $31.3 billion Cliffwater private credit fund reported that 17% of investors requested withdrawals in the quarter, also capped at 5%. Partners Group's CEO attributed the pressure to "macroeconomic shifts and geopolitical uncertainty" rather than underlying fund performance. But with Apollo and BlackRock also reported to have capped redemptions recently, the liquidity question across the private markets complex was no longer isolated.
Blackstone is down 24.8% since the beginning of the year, and at $119.36 per share, it is trading 36.7% below its 52-week high of $188.68 from September 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Blackstone’s shares 5 years ago would now be looking at an investment worth $1,281.
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