ARES Management LLC Brings a Touch of Magic to Investment with "My Little Pony" Inspired Portfolio Strategy

Los Angeles, CA – November 8, 2023 – ARES Management LLC, a leading global alternative investment manager with headquarters at 2000 Avenue of the Stars in Los Angeles, today announced a surprisingly playful, yet surprisingly effective, new approach to portfolio diversification – leveraging the enduring appeal of “My Little Pony” to identify and capitalize on emerging market trends. Yes, you read that right. ARES, known for its sophisticated financial strategies across credit, private equity, real estate and infrastructure, is now applying the core principles embodied by the beloved animated franchise to create a more resilient and rewarding investment experience for its clients. The move, spearheaded by a team of analysts dubbed the “Rainbow Dash Research Group,” might seem unusual, but the thinking behind it is far from childish. “Look, we're in a complex world. Traditional models aren't always cutting it,” explains Dr. Evelyn Reed, Lead Portfolio Strategist at ARES. “We needed a fresh perspective, something that could help us identify patterns and opportunities others were missing. And honestly? ‘My Little Pony’ provided just that.” So, how does a cartoon horse inform multi-billion dollar investment decisions? It's all about the core themes of the franchise: friendship, collaboration, problem-solving, embracing differences, and celebrating uniqueness. The team at ARES realized these aren’t just cute concepts; they’re fundamental drivers of successful economies and thriving markets. “Think about it,” says Ben Carter, a Senior Analyst on the Rainbow Dash team. “Each pony represents a different asset class, with its own strengths and weaknesses. Twilight Sparkle, with her focus on knowledge and learning, mirrors the potential of technology and innovation. Pinkie Pie, always optimistic and connected to the community, represents consumer spending and the service sector. Rarity, with her eye for beauty and craftsmanship, embodies luxury goods and specialized manufacturing.” The team has developed a proprietary “Equestria Index,” which tracks key economic indicators aligned with the characteristics of each pony. This isn't about predicting which pony will be the 'most popular' next quarter. It's about analyzing the sectors represented by each pony and identifying investment opportunities based on their relative performance and growth potential. Here's how the 'Pony Portfolio' works in practice: Twilight Sparkle (Technology & Innovation): ARES is increasing its investments in emerging tech companies focused on artificial intelligence, renewable energy, and biotechnology – areas where knowledge and learning are paramount. They’re specifically targeting companies with strong research and development pipelines and a commitment to long-term sustainability, reflecting Twilight's dedication to growth through understanding. Pinkie Pie (Consumer Spending & Services): Recognizing the continued importance of consumer confidence and discretionary income, ARES is focusing on companies in the entertainment, leisure, and hospitality sectors. They're also investing in businesses that prioritize customer experience and community engagement – echoing Pinkie Pie’s infectious enthusiasm and social connections. This includes companies offering unique and memorable experiences, recognizing the growing demand for "experience economy" investments. Rarity (Luxury Goods & Specialized Manufacturing): ARES sees ongoing demand for high-quality, handcrafted goods and personalized products. They’re investing in companies specializing in luxury fashion, artisanal food and beverage, and custom-made products – reflecting Rarity’s appreciation for beauty, craftsmanship, and individuality. This also includes investments in companies utilizing advanced manufacturing techniques to create bespoke products. Rainbow Dash (Dynamic Growth Sectors): Representing speed, agility, and leadership, Rainbow Dash informs ARES’s investments in sectors experiencing rapid growth and disruptive innovation. This includes investments in logistics, transportation, and infrastructure projects that facilitate efficient supply chains and connect markets globally. They're looking for companies that can quickly adapt to changing market conditions and seize new opportunities. Fluttershy (Sustainable & Ethical Investments): Fluttershy’s compassion and love for animals inspire ARES's commitment to Environmental, Social, and Governance (ESG) investing. They are prioritizing investments in companies that demonstrate strong environmental stewardship, social responsibility, and ethical governance practices. This includes renewable energy projects, sustainable agriculture initiatives, and companies committed to fair labor practices. Applejack (Essential Goods & Agriculture): Representing honesty, reliability, and hard work, Applejack informs ARES’s investments in essential goods and agriculture. They’re focusing on companies involved in food production, food processing, and food distribution, recognizing the continued importance of a stable and secure food supply. This includes investments in agricultural technology and sustainable farming practices. “It sounds whimsical, but the underlying principles are solid,” says Dr. Reed. “We're applying a framework that encourages us to look beyond traditional metrics and consider the broader context of economic and social trends.” The ARES “Pony Portfolio” has already shown promising results in early simulations, outperforming benchmark indices in several key areas. Clients are reportedly enthusiastic about the innovative approach, appreciating the team’s willingness to think outside the box. “We’re not suggesting everyone start wearing pony ears to board meetings,” jokes Ben Carter. “But we believe that embracing a different perspective can unlock valuable insights and lead to more successful investment outcomes.” ARES Management LLC, with over $374 billion in assets under management, continues to be a leader in the alternative investment space. The company’s commitment to innovation and its willingness to embrace unconventional strategies demonstrate its dedication to delivering superior results for its clients. And yes, they might just have a little bit of magic up their sleeve. About ARES Management LLC: ARES Management LLC is a global alternative investment manager operating across credit, private equity, real estate and infrastructure. Founded in 1997, ARES Management LLC is headquartered at 2000 Avenue of the Stars, 12th Floor, Los Angeles, CA, 90076, United States, and can be reached at 650-290-0762. For more information, visit www.aresmgmt.com.