Citigroup Offers Up A Pair Trade For AllianceBernstein Holding LP And Artisan Partners Asset Management Inc

In a note released Friday morning, Citigroup analyst William Katz initiated an Overweight AllianceBernstein Holding LP (NYSE: AB) and Underweight Artisan Partners Asset Management Inc (NYSE: APAM) pair trade.

Katz's view is that AllianceBernstein is emerging from a "multi-year funk" while Artisan Partners' flow momentum has "stalled."

Six key reason Katz said the trade will generate alpha:

• AllianceBernstein offers "superior" strategic positioning compared to Artisan Partners
• Alliance offers better yield
• The flow at AllianceBernstein is accelerating while volumes at Artisan are "struggling"
• AllianceBerstein offers better margin expansion potential
• AllianceBerstein has a greater potential for an "earnings surprise"
• Deeper upside potential from AllianceBernstein