Join Hedgeye's Financials team – co-led by Jonathan Casteleyn – for a live Black Book presentation August 16th, 2017 at 11:00AM EST to discuss our short thesis on WisdomTree (WETF).
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KEY DISCUSSION POINTS
- DUAL FRONT WAR – WisdomTree’s flagship products are battling both an increasingly challenging macro front with a declining dollar and also incremental competition within the hedged category from Blackrock. With the US dollar down significantly YTD, flows are moving into unhedged products in Japan and Europe.
- PAYOUT AT RISK? In the 11 quarters since issuing an $0.08 per share quarterly dividend, the firm has only earned more in operating income in 5 quarters and has had 6 results with operating EPS below that $0.08 payout. This is a precarious situation considering the top-down operating landscape currently.
- THE MOST EXPENSIVE STOCK - WisdomTree is the most expensive stock in the asset management sector trading at ~30x forward EPS, almost double the 15.7x mean of the group. We do not believe the company can earn its way into this multiple.
With trending losses in the US dollar, investors are moving into non currency hedged products in Japan and Europe:
Ping firstname.lastname@example.org for more information. Please note if you are not a current subscriber to our Financials research there will be a fee associated with this call.
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