APAM is a US$3bn manager which offers an interesting comparison with both Regal and GQG, although its business model is closer to GQG. The US-based active manager operates through autonomous investment teams across equities, credit and alternative assets, managing approximately US$168 billion as of October 2026. Unlike Regal’s more performance-fee-driven alternatives model, Artisan relies predominantly on management fees, averaging ~70 basis points, with performance fees contributing very little.
- Its operating margin has improved steadily to 33.7% in 2026, reflecting the scalable nature of the model. Net margins are stable at ~23-24%.
It also has a broader product offering than GQG, with credit and alternatives now representing more than US$26 billion of AUM and providing an additional growth avenue. Its long-term investment credentials remain strong, with 92% of AUM outperforming benchmarks over 10 years, although recent performance and substantial client outflows have weighed on the business – sounds familiar. AUM declined by US$10.6 billion in net outflows and US$3.8 billion in market depreciation during Q3 2026, but the stock surged more than 6% on the day, with results beating expectations, e.g. adjusted EPS: $1.03 vs. $0.96 consensus estimates.
The distinction between the three managers is important: GQG is a very profitable, lean global equities manager; Artisan is a larger, more diversified active manager with a meaningful credit and alternatives business; while Regal is a higher-fee, multi-strategy alternatives manager with greater earnings exposure to performance fees. All three, however, face the same broader challenge of investment performance, investor flows and the current pressure on active management.
- We can see APAM improving towards US$50 following its 3Q26 earnings beat, although the stock is not cheap on historical metrics.
