10 Great Stocks This "Turnaround Master" Is Buying

One of the greatest truths in investing is that the best deals are often found in chaos. When the market panics, the savvy investor sharpens their knife. No firm exemplifies this better than Apollo Global Management (APO), a master of buying assets on the cheap and turning them into gold.

And it just so happens that Apollo must report its holdings, giving us an excellent opportunity to use their talent to follow along with some great plays.

So, let's take a look at Apollo's top ten holdings.

Apollo was born in 1990, rising from the ashes of Drexel Burnham Lambert, the infamous junk bond house that imploded in scandal. However, while the regulators took down Michael Milken and Drexel, they could not kill the fundamental idea that distressed debt and undervalued companies make for lucrative hunting grounds. Leon Black, along with Joshua Harris and Marc Rowan, took that expertise and built Apollo into one of the most feared and respected names in private equity.

From day one, Apollo has thrived in the dark corners of the market, picking up distressed assets and turning them into high-return machines. They are neither afraid of leverage nor shy away from businesses others would not touch with a ten-foot pole. They understand that when everyone else is running for the exits, that is when you should be buying.

Look at LyondellBasell. The petrochemical giant went belly-up in 2009, a victim of the Great Recession. Apollo swooped in, snapped up the debt for pennies on the dollar, and took control of the company. By 2013, they had turned their investment into one of the biggest windfalls in private equity history, generating billions in profits. That is what buying low and selling high really looks like.

But Apollo is not just about one-off distressed plays. They have mastered finding undervalued assets, restructuring them, and creating long-term value. Their $27 billion leveraged buyout of Harrah's (now Caesars Entertainment) in 2006 was another textbook move. Though the financial crisis nearly broke the deal, Apollo played the long game, navigating through bankruptcy restructuring and ultimately emerging with a profitable investment.

This is a firm that understands one of the most powerful principles of wealth creation: The best investments are made when assets are cheap, unpopular, and misunderstood. Whether distressed debt, unloved real estate, or an entire industry most investors overlook, Apollo knows how to find and extract value.

Most investors do not realize that they can harness Apollo's talent and brain power to deliver market-beating returns for their portfolios.

Tracking the firms buying and selling activities by reading the firm's 13f filings has provided significant opportunities for investors who take the time and effort to peruse the documents.

Here are Apollo's top holdings as of the end of December 2024:

ADT Inc. (ADT)

ADT is a leading provider of security and automation solutions for residential and commercial customers in the United States. The company offers monitored security systems, fire detection, video surveillance, and smart home automation services. With a strong recurring revenue model, ADT benefits from long-term customer contracts but faces competition from DIY security solutions.

Hilton Grand Vacations Inc. (HGV)

Hilton Grand Vacations is a leading vacation ownership company that develops, markets, and operates timeshare resorts under the Hilton brand. The company generates revenue through timeshare sales, resort operations, and financing services. HGV benefits from its affiliation with Hilton but operates in a cyclical industry sensitive to economic downturns.

Rackspace Technology Inc. (RXT)

Rackspace is a cloud computing and managed services company that provides multi-cloud solutions, including migration, optimization, and security services. The company partners with major cloud providers like AWS, Microsoft Azure, and Google Cloud. However, Rackspace has struggled with profitability and competition from hyperscalers and other managed service providers.

Sun Country Airlines Holdings Inc. (SNCY)

Sun Country Airlines is an ultra-low-cost carrier (ULCC) based in the United States, focusing on leisure travel, charter services, and cargo operations through a partnership with Amazon. The company differentiates itself with a diversified revenue model but faces competition from larger ULCCs and traditional carriers.

Archrock Inc. (AROC)

Archrock is a leading provider of natural gas compression services, supporting midstream and upstream energy companies. The company benefits from stable demand for compression in natural gas production and transportation. Its business model relies on long-term service contracts, but it is exposed to energy price cycles.

Gannett Co. Inc. (GCI)

Gannett is the largest newspaper publisher in the U.S., owning USA Today and numerous local publications. The company is transitioning from print to digital media, focusing on digital subscriptions, advertising, and content services. However, it faces structural headwinds from declining print revenues and competition from online news platforms.

MidCap Financial Investment Corp. (MFIC)

MidCap Financial Investment is a business development company (BDC) focused on providing debt and equity financing to middle-market companies. It primarily invests in senior secured loans and other credit instruments, benefiting from stable interest income. The company operates in a competitive private credit space but is backed by Apollo Global Management, enhancing its deal flow and underwriting strength.

Altice USA Inc. (ATUS)

Altice USA is a broadband, video, and telephony provider serving residential and business customers. The company operates under the Optimum brand and competes with larger telecom and cable providers. Altice has struggled with subscriber losses and high debt levels but continues to focus on fiber expansion and cost-cutting initiatives to stabilize growth.

Global Business Travel Group Inc. (GBTG)

Global Business Travel Group, operating as Amex GBT, is a leading managed travel services provider catering to corporate clients. The company offers travel booking, expense management, and consulting solutions. While benefiting from a rebound in business travel, it faces challenges from changing work trends, including remote and hybrid work reducing corporate travel demand.

Sabre Corp. (SABR)

Sabre is a global travel technology company that provides software and distribution solutions to airlines, hotels, and travel agencies. It operates in the Global Distribution System (GDS) market, facilitating airline ticket bookings. While benefiting from the travel recovery, Sabre faces competition from Amadeus and Travelport, along with ongoing digital transformation pressures in the industry.

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