“While we were surprised by the magnitude of the outflow, and it points to greater concentration issues than we had previously appreciated, it also points to WisdomTree having leading positions in certain asset classes (emerging markets, currencies) and the products having the capacity and liquidity to handle sizable outflows without disruption,” they wrote.
Gabelli & Co. analysts said the roughly $700 million outflow in the last week of September involved moves away from ETFs impacted by dollar appreciation and with exposure to emerging markets.
“The size and concentration of the outflows are a disappointment,” they said in a note, but kept their buy rating on the stock.
“Despite a difficult quarter and a challenging outlook for global markets, we continue to believe WisdomTree is well positioned to benefit from the high secular growth rates of ETFs. We continue to recommend purchase.”
WisdomTree’s stock ETFs are different from funds that track market-cap-weighted indexes. Some of the firm’s ETFs instead weight companies by earnings or dividends, for example. It also manages currency, bond and alternative ETFs. [WisdomTree Swings to Slight Quarterly Profit]
WidsomTree listed its stock on the Nasdaq earlier this year. Former hedge fund manager Michael Steinhardt is the company’s chairman. [WisdomTree to List Stock on Nasdaq]
WisdomTree Investments
