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Jan Lochtenberg's avatar

Took a major position as well also on your recommendation.

Do we have confirmation that Mr Adler started work this week?

Wondering why it would not be easier for L&G to sign a JV deal with APO to originate high yielding private credit assets rather than build its own alt assets platform?

After all Marc Rowan wants 25% of everything and 100% of nothing”.

APO could keep 25% and L&G 75% of investment grade assets capturing a 2% spread.

Seems like a no-brainer.

L&G would then be off to the races!!!

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Alexander Steinberg's avatar

I do not have any new info on Mr. Adler and I do not expect anything quick in transforming Asset Management.

LGEN has to develop its own alt management platform to justify the Asset Management existence. The alternative path would be to sell Asset Management and enter into a JV or something similar (this is what NN in the Netherlands did). However, it is not an option as Asset Management is the most important sales channel for both Institutional Retirement and Retail. They have to implement the plan they have.

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Brian Gerstein's avatar

Alexander, similar to Carsten I also established a position 2 weeks ago based upon your recommendation. I have LGGNY, (the ADR), with an average cost basis of $14.02. Looking good so far! I am looking forward to following your further analysis on Legal & General as you post it. Thanks!

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Alexander Steinberg's avatar

Thanks! I did not expect good news to arrive so quickly. The stock has jumped because the market liked an assurance about future buybacks. But it is too early to celebrate. It will be interesting to see their update on Asset Management. I guess they will issue it once Mr. Adler figures out what is going on.

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Carsten Prause's avatar

Absolutely love it. Took a position 2 weeks ago based on your recommendation

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Alexander Steinberg's avatar

As I explained, it is too early to celebrate anything. Smooth operations of Institutional Retirement is a requirement, not a transformation sign.

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Carsten Prause's avatar

Of course. I agree. Still nice to see a bump though!

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