Private equity stocks to buy on the dip, and finding buying opportunities in small caps

CNBC's "Worldwide Exchange" highlighted potential rebound plays in alternative asset managers and small-cap stocks. LionTrust Asset Management sees long-term structural upside in Apollo Global and Blackstone, noting their significant pullback from 52-week highs presents an investment opportunity given the need for capital to build out compute and data center assets. Goldman Sachs anticipates continued upside for the Russell 2000, citing a shift in money flow back into small caps, with top picks including Ollie's Bargain Outlet, Shake Shack, and Piper Sandler. Vista Equity Partners CEO Robert Smith emphasized the growing importance of quantum computing for cybersecurity, particularly in protecting agentic software and addressing increased attack surfaces.

Analysis

Financial market commentary highlights specific segments for potential rebound and growth. Alternative asset managers Apollo Global (APO) and Blackstone (BX) are identified as attractive investment opportunities by LionTrust Asset Management, primarily due to their current valuations being over 30% below their 52-week highs. This pullback presents an entry point into companies poised to benefit from the "exceptional" long-term structural demand for capital in compute and data center infrastructure development. Simultaneously, Goldman Sachs expresses a bullish outlook for the Russell 2000, anticipating continued upside despite its recent eight-week rally out of nine, noting it still underperforms the S&P 500 year-to-date in 2025. This optimism is fueled by a reversal in fund flows back into small-caps and supportive technical analysis, with specific mentions of Ollie's Bargain Outlet, Shake Shack, and Piper Sandler as potential beneficiaries. Separately, Vista Equity Partners CEO Robert Smith emphasized the escalating importance of quantum computing, particularly quantum encryption, as a critical cybersecurity solution to protect the expanding attack surfaces created by increasingly "agentic" software.

Key Decisions for Investors

• Investors could evaluate alternative asset managers like Apollo Global and Blackstone for potential capital appreciation, given their current valuation discount and strategic alignment with long-term infrastructure build-out themes.
• Consider increasing allocation to the small-cap sector, potentially through broad indexes like the Russell 2000 or specific names such as Ollie's Bargain Outlet, Shake Shack, and Piper Sandler, in light of improving fund flows and technical outlooks.
• Monitor the quantum computing landscape for emerging investment opportunities, particularly in companies specializing in quantum encryption, as this technology is becoming crucial for securing next-generation software systems.