Is Federated Hermes a Good Investment?

Are you considering investing in Federated Hermes but unsure if it’s a good choice? In this article, we will delve into the company’s history, financial performance, and current position in the market to help you make an informed decision.

Background:

Federated Hermes is an investment management firm that provides a wide range of financial services to clients worldwide. It was founded in 1955 and has since grown to become one of the largest asset managers in the US. The company offers investment strategies for equity, fixed income, and alternative assets.

Financial Performance:

  • Revenue: Federated Hermes reported revenue of $1.7 billion in 2020, which was a decrease from $1.9 billion in 2019.
  • Net Income: The company’s net income for 2020 was $321 million, compared to $388 million the previous year.
  • Assets Under Management (AUM): Federated Hermes’ AUM was $628 billion as of December 31st, 2020.

Market Position:

Federated Hermes is well-positioned in the market due to its diverse range of investment strategies and strong reputation. The company has consistently ranked among the top asset managers globally and has received several awards for its performance.

However, like any investment, there are also risks associated with investing in Federated Hermes. One major risk is the possibility of losing money due to market volatility or poor investment decisions by the company.

The Verdict:

In conclusion, Federated Hermes is a reputable investment management firm with a strong market position and diverse range of investment strategies. While there are risks associated with investing in any company, those who are willing to take on some risk may find that investing in Federated Hermes is a good choice. As always, it’s important to do your own research and consult with a financial advisor before making any investment decisions.

Sources:

  • https://www.federatedinvestors.com/financial-intermediary/about.do
  • https://www.com/documents/misc/2020-Annual-Report.pdf
  • https://www.barrons.com/articles/federated-hermes-is-a-rare-value-amid-expensive-asset-managers-analyst-says-51619664200