UPDATE: Oppenheimer Initiates Apollo Global Management at Perform

Oppenheimer initiated Apollo Global Management

with a Neutral rating as it seeks better performance from the company's funds. Oppenheimer noted, "APO is a leading player among the PE alternative asset managers, a business model we very much like. We believe it will be the private equity distributable earnings from the 2005-2008 vintages that will drive medium-term stock performance. Apollo has two funds from this era: Fund VII is generating carry, but the gains are primarily driven by Apollo's one large investment in LYB. Fund VI is hovering around the cusp, but some of the public companies in that fund have been struggling. Although we think Apollo will generate value for shareholders over time, we'd be more comfortable being enthusiastic on the name once the Fund VI companies perform better." Apollo Global Management closed at $14.66 on Thursday.