Prominent value investors have picked up large money managers in the financial space. Exchange traded fund investors can also track some of these asset managers through capital market options.
Mario Gabelli, CEO and chairman of Gamco Investors, is adding shares of State Street (NYSE: STT), Northern Trust (NasdaqGS: NTRS) and Bank of New York Mellon (NYSE: BK), and also likes T. Rowe Price (NasdaqGS: TROW), Legg Mason (NYSE: LM) and Janus Capital Group (NYSE: JNS), reports Tom DiChristopher for CNBC.
ETF investors can also gain exposure to these asset managers through the PowerShares KBW Capital Markets Portfolio (NYSEArca: KBWC) and SPDR S&P Capital Markets ETF (NYSEArca: KCE).
KBWC includes STT 7.6%, TROW 3.5%, JNS 4.3% and LM 3.4%. KCE follows a more equal-weight indexing approach and holds STT 2.6%, NTRS 2.6%, BK 2.5%, TROW 2.7%, LM 2.9% and JNS 3.0%.
KBWC tracks the KBW Capital Markets Index and KCE tracks the S&P Capital Markets Select Industry Index. Both underlying indices include a group of broker-dealers, asset managers, trust and custody banks or exchanges.
Janus surged 26.9% over the past three months after Bill Gross switched over to the company from PIMCO in September. [These ETFs Could Benefit From Gross Joining Janus]
Bank of New York Mellon recently gave activist investor Nelson Pelts a board seat, but this decision along was not the deciding factor for Gabelli.