FPA Queens Road Value Fund on Ameriprise Financial, Inc.
Thesis
Ameriprise Financial was a leading quarterly contributor following strong results that showed approximately 12% top-line growth. In late September, the board authorized an additional $5.5 billion of share repurchases. The commentary presents business growth combined with a substantial buyback as the positive factors supporting the holding. Its position in the portfolio reflects the managers’ preference for profitable financial businesses with shareholder-return capacity.
“Ameriprise benefited from strong third-quarter results with ~12% top-line growth, and in late September its board authorized a new $5.5 billion share repurchase program.”
Key risks
- Higher financing costs and interest rates were cited as a difficult market backdrop.
- The positive case relies on maintaining the strong revenue trajectory.