BOSTON - State Street Corporation (NYSE:STT) has been appointed to provide a suite of fund services for Galapagos (NASDAQ:GLPG) Global Capital Management's hedge funds, the company announced today. The financial services giant will handle fund accounting, fund administration, and investor servicing for Galapagos Capital's Galápagos Macro Master LP and Galápagos Macro Cayman Ltd.
Otavio Scuccuglia, head of sales for Brazil at State Street, remarked on the new partnership, expressing the company's honor in gaining the confidence of Galapagos Capital to deliver comprehensive asset servicing solutions. He emphasized State Street's dedication to offering value and customized services to meet the dynamic needs of their clients.
Galapagos Capital, which has its roots in Brazil, will benefit from State Street's extensive infrastructure and global reach. These capabilities are expected to assist the hedge fund manager in optimizing investment operations, navigating complex market conditions, and achieving sustainable growth.
Sergio Zanini, a partner at Galapagos Capital, also expressed satisfaction with the partnership, noting that State Street's service solutions and commitment to client service align well with Galapagos Capital's strategic objectives.
State Street Corporation is a world leader in providing financial services to institutional investors, including investment servicing, management, research, and trading. As of March 31, 2024, the company boasts $43.9 trillion in assets under custody or administration and $4.3 trillion in assets under management. State Street operates in over 100 geographic markets and employs about 46,000 people globally.
This partnership is a strategic move for both State Street and Galapagos Capital, as it signifies a strengthening of State Street’s position in providing financial services to investment firms and an enhancement of Galapagos Capital's operational efficiency. The information for this report is based on a press release statement.
In other recent news, State Street Corporation has experienced notable developments. Wolfe Research downgraded State Street's stock to Underperform due to concerns about the company's earnings per share (EPS) growth through 2026.
The firm's projections significantly differ from the market consensus, predicting a lower compound annual growth rate in EPS. State Street also reported mixed results for its first quarter, with growth in fee revenue and total revenue despite challenges in servicing fees.
In the Federal Reserve's annual stress test, State Street, among other major U.S. banks, demonstrated sufficient capital to withstand a severe economic downturn. The company's high-quality capital levels remained well above the required regulatory minimum even in a severe economic scenario.
State Street was also affected by an Oklahoma law aimed at preventing state pension systems from investing in companies reducing oil and gas industry investment. However, an Oklahoma judge recently issued a temporary injunction against the law.
In other developments, State Street settled a lawsuit with Kristen Visbal, the creator of the "Fearless Girl" statue, over the sale of statue replicas. These are some of the recent developments involving State Street Corporation.
InvestingPro Insights
As State Street Corporation (NYSE:STT) announces its new partnership with Galapagos Global Capital Management, the company's financial metrics reflect a robust business model. With a market capitalization of $22.42 billion and a healthy P/E ratio of 13.6, which further adjusts to an even more attractive 12.06 for the last twelve months as of Q1 2024, investors might find State Street's stock compelling. The company's commitment to shareholder returns is evident through its impressive track record of raising dividends for 13 consecutive years, a streak that is not only a testament to its financial stability but also to its management's confidence in the company's future.
An InvestingPro Tip highlights State Street's aggressive share buyback strategy, which can often signal management's belief that the shares are undervalued. Additionally, State Street has maintained dividend payments for an astonishing 54 consecutive years, reinforcing its reputation as a reliable income stock. The dividend yield as of mid-2024 stands at a solid 3.71%, coupled with a notable dividend growth of 9.52% in the last twelve months as of Q1 2024, which should catch the eye of income-focused investors.
While the company's revenue growth has seen a slight decline of 1.25% in the last twelve months as of Q1 2024, it has managed to maintain a substantial operating income margin of 22.2%. Moreover, analysts anticipate profitability for the current year, as noted in another InvestingPro Tip. For investors seeking further insights, additional tips on State Street can be found on InvestingPro, with a total of 7 more tips available to enrich their investment strategy. To access these exclusive insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Whether State Street's new partnership with Galapagos Capital will further enhance its financial performance remains to be seen, but the current data and trends offer a promising outlook for the company.
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