(HedgeCo.Net) A rough quarter for publicly listed alternative-asset managers has opened a buying window, according to Oppenheimeranalyst Chris Kotowski, who upgraded Ares Management to “Outperform” this week.

Kotowski argues that investors have overreacted to isolated credit defaults, dragging down stocks like Ares, Apollo, and Blue Owl despite stable fundamentals.

“Ares has delivered consistent earnings growth for two decades,” Kotowski wrote in a note. “Its diversified fee income and disciplined underwriting make it one of the highest-quality franchises in alternatives.”

Ares stock has fallen nearly 18 % over the past three months. Kotowski’s 12-month price target implies a 25 % rebound if credit markets stabilize.

The note follows volatility tied to troubled private-credit borrowers such as Tricolor and Anthology. Still, analysts say those exposures are immaterial to large platforms.

“Investors are throwing the baby out with the bathwater,” said Kotowski. “We see a mismatch between perceived risk and actual portfolio performance.”

The endorsement may reignite confidence in publicly traded alternative-manager stocks, which remain key bellwethers for sentiment in private markets.