Publicly listed U.S. money managers' stocks plummeted Friday after the U.K. voted to leave the European Union.
The manager to take the biggest hit was Invesco, with its stock price dropping 13.67% from when markets opened this morning. Invesco Perpetual in the U.K. makes up a large part of the Atlanta-based company's business.
Christopher Shutler of William Blair & Co. wrote in a note that his company estimates 25% to 30% of Invesco's profits are denominated in British pounds.
He added that from an operational standpoint, Invesco's management has stated “it does not expect Brexit to affect the company materially” because its global offerings are “managed out of many different locations both within and external to the EU.”
Legg Mason saw its stock price drop 9.6% during this period. Meanwhile, Affiliated Managers Group's share price tumbled 11.68% from the opening of markets, while Northern Trust's stock dropped 8.44%. Bank of New York Mellon declined 8.57% and J.P. Morgan fell 6.98%.
Franklin Resources' stock dropped 7.35%, while Janus Capital Group dropped 6.84%. Federated Investors' declined 7.21% while money management giant BlackRock saw its stock go down 6.82%.
AllianceBernstein's share price was down 2.59%.
U.S. alternative asset managers did not fare as poorly. Oaktree Capital Management saw the smallest decrease at 2.14%, while KKR had the largest drop at 6.19%. Blackstone Group's share price experienced a 5.45% decline.
Mr. Shutler added that “Brexit could create investment opportunities” for Blackstone “but likely hurts near-term performance and potential for exit events (distributions).”
The Dow Jones Industrial dropped 3.39% and the S&P 500 fell 3.6%.
