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Why this leading fund manager is backing better times ahead for the Macquarie (ASX:MQG) share price

This fund manager thinks there could be more in the tank for Macquarie…
The post Why this leading fund manager is backing better times ahead for the Macquarie (ASX:MQG) share price appeared first on The Motley Fool Australia. –

Macquarie Group Ltd (ASX: MQG) has been in the spotlight lately with its numerous takeover bids. However, the Macquarie share price has been stagnant since mid-April this year.

For Prime Value Asset Management, the investment bank was one of the biggest detractors in its Opportunities Fund for the month of May.

Despite the recent underwhelming performance, the fund manager thinks there are good times ahead for the Macquarie share price.

Keeping the spice alive with Macquarie

Firstly, to give some background… Prime Value is a boutique Australian investment manager that has been around since 1998. The firm manages a range of funds, from Australian equities to alternative assets.

Macquarie holds a top spot in the fund manager’s opportunities fund. This fund seeks to create long-term wealth through investing in companies led by strong management teams that will benefit from compounding growth over a number of years.

In the fund’s May update, Macquarie shares were pointed out as a laggard in the fund. The Macquarie share price slipped 5.3% during the month. This followed the company reporting its results for FY21.

Prime Value outlined that it considers the investment bank to be executing well… “There were few flags in their latest updates that give rise to concerns over their business operations.”

Furthermore, the Melbourne-based fund manager said:

What keeps us excited about Macquarie Group, six years after we originally invested in the company? Macquarie has become very adaptable and established a track record of exploiting numerous opportunities across global capital markets. The group is a leader in alternative and infrastructure investments.

‘Going green’ thematic

Beyond being a quality investment group, Prime Value pointed out the bank’s positioning in the renewable energy space.

For a fun fact, Macquarie Group has invested roughly $60 billion in renewables since 2010. It appears that the renewable inflows aren’t stopping any time soon either. In February, Macquarie closed the books on $2.97 billion to fund wind and solar projects.

“… we think this is a sustainable trend that will not reverse anytime soon,” Prime Value said.  

Macquarie share price snapshot

The Macquarie Group share price has delivered shareholders S&P/ASX 200 Index (ASX: XJO) over the last year. With a return of 29.2% in the past 12 months, the investment bank has beat the index by roughly 7% before dividends.

Correspondingly, the company’s market capitalisation has climbed to $57.7 billion. This is above the pre-pandemic levels witnessed.

The post Why this leading fund manager is backing better times ahead for the Macquarie (ASX:MQG) share price appeared first on The Motley Fool Australia.

Should you invest $1,000 in Macquarie Group right now?

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Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Macquarie Group wasn’t one of them.

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More reading

Macquarie (ASX:MQG) share price up amid news of rival bid for Sydney Airport
Why the Sydney Airport (ASX:SYD) share price flew higher again today
ASX 200 rises, Macquarie up, Rural Funds launches capital raising

ASX 200 midday update: Zip rockets, AMP asset sale

Is the Macquarie (ASX:MQG) share price a buy for dividends?

Motley Fool contributor Mitchell Lawler owns shares of Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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