Seeking Alpha
Editor's notes: BAER.VX's acquisition of IWM positions the company well for future growth. Combined with the firm's long history of success, a near-term capital deployment should send shares 30% higher.

Executive Summary

  • Private Banking Business: Highly profitable and low capex
  • Baer is the top private bank in terms of economics while continually carving its moat with larger scale, diversification and emerging markets
  • Baer's management team has a history of making advantageous strategic moves. It got out of the brokerage business, acquired and integrated numerous private banks, sold off GAM and Artio to focus on the core private banking business, and merged its multiple share classes into one class.
  • Asia AUM expected to grow to ~25% of group AUM by 2015, which will help with growth. Emerging Markets are targeted to be 50%
  • Overcapitalized with BIS Tier 1 capital of 24.5%. Management's Tier 1 capital target of 12% would mean nearly

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