SS&C Technologies: A Compelling Play On Continued Growth And Regulation In The Hedge Fund Industry

 

Growing over $3 trillion this year in AUM, a number of hedge funds are betting on continued industry growth translating into significant top- and bottom-line growth.

Advent deal will provide SSNC with a key platform it can use to further integrate into its systems and reports, locking the client in for the long term.

At over 41x current EPS and 22x forward earnings, the company is by no means cheap, but is certainly justified based on historic and forward growth metrics.

Items like Form PF and a variety of other compliance and reporting regulations are constantly evolving; top-of-the-line services are in high demand across all types of investment funds.

Based on the current and future economic climate, SSNC’s growth trend is expected to continue, reaching an 18-month price target of 117 given current estimates and historic P/E multiples.

 Overview Of SS&C Technologies Holdings

SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) is a software provider and software-enabled servicer for the financial services industry. It provides third-party software-enabled front/middle office services as well as back-office functions such as accounting and reporting for a variety of financial services clients such as multinational banks, retail banks, hedge funds, hedge fund of funds, private equity, family offices, credit unions, broker/dealers, institutional money managers, insurance companies, property managers, commercial lenders, financial exchanges and real estate lenders.

The company operates across six continents with its headquarters in Windsor, Connecticut. SSNC is considered the leading provider of such third-party services, and continues to expand primarily through strategic acquisitions as well as organic growth.

Although you will find it categorized as a technology/software provider, SSNC is primarily a financial services play. Its subsidiary, SS&C GlobeOp, operates what now has become one of the world’s largest administrators for the Asset Management Industry.

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