Platinum Asset Management Limited (ASX: PTM) shares have come off the boil – falling 0.75% today.
However, the money manager's profit result was actually quite good. Management fees were up $53 million, to $338 million, and profit climbed 12.4% to $213 million.
Closing funds under management also grew strongly, largely thanks to a positive investment performance of $5.2 billion.
Earnings per share rose to 36.6 cents, which were slightly ahead of expectations of 36.3 cents, and a dividend of 20 cents per share was announced.
Payable on September 22, the fully franked distribution takes the group's full-year payout to 37 cents per share.
Is Platinum a great buy?
The performance of Platinum's funds has been great over years gone by. Indeed, many have healthily outperformed their broader market indices.
However, for long-term Foolish investors looking to buy shares in a global fund manager, now probably isn't the time to do so.
Indeed, personally, I believe the best time to buy shares of cyclical businesses like Platinum is during times of heightened market uncertainty. That's because they're more leveraged to the market cycle than an ordinary industrial stock, like Telstra Corporation Ltd (ASX: TLS).
For example, right now Platinum and its peers are enjoying fund inflows from investors and very strong investment performances – which is boosting their profits.
Unfortunately, during times of market uncertainty investors are prone to pulling their funds out of money managers' hands and placing them in safe-haven assets like bonds and cash.
It's at times like those – when profits are below the cycle average – when shares in fund management stocks like Platinum become 'great buys' for long-term Foolish investors.
Therefore, although it's a great business performing well, I'd hold off buying Platinum shares for now.
