APAM vs FHI: Which Is the Better Buy in 2026?

Last updated October 2026

Short answer

FHI is the larger of the two ($4.18B market cap): the incumbent the market prices for continued execution (9.67x forward earnings, beta 0.64). APAM is the smaller challenger ($2.29B), priced similarly on forward earnings (8.85x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.

APAM vs FHI: the tie-breaker metrics

Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Metric	APAM	FHI	What it tells you
Market cap	$2.29B	$4.18B	Size. The larger name is the incumbent; the smaller has more room to grow and more to prove.
Forward P/E	8.85	9.67	Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up.
Trailing P/E	7.78	10.42	Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price.
Beta	1.69	0.64	Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through.
Price vs 52-week range	9% of range	45% of range	Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why.
Price / book	5.45	3.19	How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price.

Before you buy: how APAM and FHI affect your concentration

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. APAM and FHI share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined APAM and FHI exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

What does Artisan Partners Asset Management (APAM) do?

Artisan Partners Asset Management (NYSE: APAM) is a Milwaukee-based active investment manager built around autonomous investment teams that run distinct equity and fixed-income strategies across global, international, US, and credit mandates. Revenue is almost entirely management fees charged as a percentage of assets under management (AUM), so the business scales directly with markets and client flows. Preliminary AUM at September 30, 2026 was about $168.7 billion, split between Artisan Funds and Artisan Global Funds (about $90.2 billion) and separate accounts and other AUM (about $78.5 billion), down from roughly $183 billion in mid-2026. It serves institutions, financial intermediaries, and retirement plans.

Full APAM guide

What does Federated Hermes (FHI) do?

Federated Hermes, Inc. (NYSE: FHI) is a global investment manager headquartered in Pittsburgh, Pennsylvania, formed from the combination of Federated Investors and the UK-based Hermes Investment Management. As of the first quarter of 2026 the firm managed a record ~$907 billion in assets, split roughly into money market funds (about 75% of managed assets), fixed income (about 11%), equity (about 11%), alternatives (about 2%), and multi-asset (under 1%). Its money market business, with a record ~$685 billion in assets, makes Federated one of the largest cash-management providers in the country, serving institutions, financial intermediaries, and individual investors.

Full FHI guide

APAM vs FHI: how do they differ?

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

APAM drivers: AUM-driven revenue; Variable dividend and capital return.
FHI drivers: Scaled money market franchise; Growth in equity and alternatives.

Which fits which kind of investor

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: APAM's earnings and dividend are directly exposed to equity and credit market swings, so a market drawdown can compress AUM, fees, and the payout at the same time. For FHI, federated's heavy concentration in money market funds ties a large share of its earnings to short-term interest rates: sustained rate cuts can compress money market yields and force fee waivers, which reduce net revenue, as the firm experienced during past near-zero-rate periods.

APAM or FHI: which should you pick?

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick APAM if you believe its drivers more; FHI if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the APAM and FHI guides.

APAM vs FHI: the full fundamentals

APAM. At about $32, APAM trades near 7.8x trailing and 8.9x forward earnings with a market cap near $2.3 billion, down from about $2.6 billion in July. The standout figure is the double-digit trailing dividend yield, which reflects an intentionally high, variable payout rather than a stable coupon. Because fees track AUM, the multiple and the dividend both hinge on market direction and net flows, and the October 27 report will show how much the lower September AUM affects third quarter fees.

FHI. At ~$56.24 Federated Hermes trades near 10.5x trailing earnings of ~$5.37 per share and under 10x forward estimates, a modest multiple for a manager that has grown revenue double digits and beaten EPS estimates four quarters in a row. The discount reflects how much of the asset base sits in money market funds, whose economics depend on short-term interest rates and cash demand. The October 29 quarter will show whether money market and equity assets held their records into the third quarter.

Headline figures (approximate, October 2026): APAM shows aum (sep 30, 2026, preliminary) ~$168.7B, revenue (ttm) ~$1.25B (Q2 2026 ~+9% YoY), net income (ttm) ~$275M (net margin ~24%), q2 2026 eps $0.94 vs $0.91 expected; FHI shows revenue (ttm) ~$1.93 billion (Q2 2026 ~+18% YoY), net income (ttm) ~$393 million (profit margin ~21%), diluted eps (q2 2026) ~$1.38 vs ~$1.19 expected, p/e trailing / forward ~10.5x / ~9.7x.

The bottom line: APAM vs FHI

APAM and FHI are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined APAM and FHI exposure against your real portfolio. It is not an investment adviser.

Wondering how APAM or FHI fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.

Investing in Artisan Partners Asset Management with AI

Connect the broker you already use and ask Walnut's AI how APAM fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.

Does APAM fit me?

FAQ

What is the difference between APAM and FHI?

Is APAM or FHI the better stock?

Neither is universally better. FHI is the larger incumbent; APAM is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.

Which is cheaper, APAM or FHI?

On forward P/E (as of October 2026), APAM trades at 8.85x and FHI at 9.67x, so APAM is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.

Should you own both APAM and FHI?

Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.

What are the risks of APAM vs FHI?

APAM: APAM's earnings and dividend are directly exposed to equity and credit market swings, so a market drawdown can compress AUM, fees, and the payout at the same time. The secular shift from active to passive strategies pressures fees and flows: the firm recorded roughly $3.1 billion of net outflows in Q1 2026, and AUM fell to about $168.7 billion by September 30 from about $183 billion at mid-year, renewing outflow concerns. Concentration in a handful of investment teams means the departure of a key portfolio manager or sustained underperformance in a flagship strategy could trigger redemptions. Because the dividend is variable and analysts expect EPS to decline in both 2026 and 2027, income investors relying on the headline yield may see smaller payouts. Fee compression and rising platform, regulatory and technology costs add ongoing margin pressure. FHI: Federated's heavy concentration in money market funds ties a large share of its earnings to short-term interest rates: sustained rate cuts can compress money market yields and force fee waivers, which reduce net revenue, as the firm experienced during past near-zero-rate periods. Asset flows are cyclical and competitive, with much larger rivals (BlackRock, Fidelity, Vanguard, JPMorgan, Goldman Sachs, Charles Schwab) pressuring fees across both cash and long-term products. Market downturns lower equity and fixed-income assets and therefore fees, and performance fees and carried interest can be lumpy. Regulatory changes to money market fund rules (floating NAVs, liquidity fees, and redemption gates) have historically shifted assets between fund types and could do so again. Finally, as a mid-cap manager (market capitalization around $4.2 billion in October 2026), the stock can be more volatile than larger diversified financials. Growth is also expected to slow: consensus calls for EPS growth of ~10% in 2026 and ~6% in 2027, and the seven analysts covering the stock rate it a hold on average, with a mean target near $59.

Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell APAM or FHI; figures are approximate and dated (as of October 2026). Verify current data before investing.