Schwarzman: Blackstone deservers far higher valuation

|About: The Blackstone Group L.P. (BX)|By:, SA News Editor

An incredulous Stephen Schwarzman (on the earnings call) asks why Blackstone (BX +4.7%) trades at a 50% discount to traditional asset managers when it's growing AUM at 4x the pace (28% vs. 7%) and has a distribution of 6% vs. 2.8%.

In my experience, says Schwarzman, these sorts of inefficiencies get corrected over time, and Blackstone will trade at or above the valuations of the traditional managers to the great benefit of its shareholders.

Speaking earlier on a call with reporters, COO Tony James on the current buyout environment: "It's frustrating for our guys going after things and keep getting outbid."

Earlier: Blackstone's Q4 results fly past estimates