TD Cowen notes that on June 2, news emerged that Cliffwater's flagship non-traded business development company received 17% tender requests during the May 2-29 window, above the 14% seen in February. While not entirely unexpected, the update could push an alternatives-sector recovery beyond Labor Day, with follow-through dependent on additional redemption data from key peers, the firm says. TD Cowen describes Cliffwater's update as somewhat inconclusive given its early reporting, and believes investors will need to see several more weeks of peer disclosures. The firm also maintains that Alts may remain challenged until Labor Day due to reporting cycles, and if upcoming updates fail to show improvement, the group could remain under pressure through year-end. Finally, the firm says the latest developments --alongside emerging issues across wealth managers and exchanges -- reinforce the view that it may simply be "easier" to own traditional asset managers. Invesco (IVZ), Affiliated Managers (AMG), and Franklin Resources (BEN) remain TD Cowen's top picks.
