Morningstar Rating

Stock Research and Analysis

by Greggory Warren, CFA

Bulls Say

AMG has constructed a portfolio of topnotch affiliates, including Yacktman, Tweedy, Browne, Third Avenue Management, Genesis Asset Managers, AQR Capital Management, and Foyston, Gordon & Payne.
AMG's affiliate model provides it with a diverse mix of AUM and earnings, with exposure to both value and growth equity strategies, fixed-income products and alternative investments.
Concerns over higher tax rates and ongoing succession planning at boutique asset managers are expected to propel future sales of equity stakes in many of these types of firms to larger financial institutions. Read more 

Bears Say

AMG's investment strategy hasn't generated many meaningful synergies or efficiencies, with the firm ceding the operating leverage inherent in the asset management business to its affiliates.
AMG's core business strategy depends on continued growth from its existing cadre of affiliates and successful new investments in boutique asset managers.
As the size and scale of AMG's operations increase, the firm will need to make larger and larger acquisitions or increase the sheer number of deals it does in any given year to move the needle, increasing the risks associated with this strategy. Read more 

Management

Sean Healey has been CEO 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 worked on mergers and acquisitions at   Read more 

Profile

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

3 Banking Takeaways From the Quarter 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.