Morningstar Rating

Stock Research and Analysis

by Greggory Warren, CFA

Bulls Say

AMG has built a portfolio of well-respected affiliates, including Yacktman, Tweedy Browne, Third Avenue Management, Genesis Investment Management, AQR Capital Management, and Foyston Gordon & Payne.
AMG's affiliate model provides it with a diverse mix of AUM and revenue, with exposure to both value and growth investment styles, as well as fixed-income and alternative investments.
Higher tax rates and ongoing succession planning at boutique asset-management firms are expected to accelerate the sale of equity stakes in many of these firms to larger financial institutions like AMG. Read more 

Bears Say

With each affiliate remaining independent, AMG's acquisition strategy hasn't generated significant synergies or efficiencies. The firm also cedes the operating leverage inherent in the asset-management business to its affiliates.
Given the size of its current operations, AMG would need to either commit to even larger acquisitions or increase the sheer number of deals done in any given year to move the needle, increasing the risks associated with its acquisition strategy.
Despite having a strong pipeline of potential targets, acquisition activity has been relatively light this year. Read more 

Management

Sean Healey has been CEO of Affiliated Managers Group since January 2005. He assumed the role of chairman of the board of directors in January 2011. Healey joined AMG in 1995 and became president and COO in 1999. Before joining the firm, he had worked   Read more 

Profile

Affiliated Managers Group offers investment strategies to both retail and institutional investors through its network of affiliates. The firm typically buys a majority interest   Read more 

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