AMG - Affiliated Managers Group, Inc.
| Previous Close | 76.51 |
| Open | 75.73 |
| Bid | 0.00 x 900 |
| Ask | 0.00 x 800 |
| Day's Range | 73.90 - 76.23 |
| 52 Week Range | 73.90 - 150.61 |
| Volume | 518,963 |
| Avg. Volume | 519,193 |
| Market Cap | 3.78B |
| Beta (3Y Monthly) | 1.63 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -2.48 |
| Earnings Date | Oct 28, 2019 - Nov 1, 2019 |
| Forward Dividend & Yield | 1.28 (1.69%) |
| Ex-Dividend Date | 2019-08-07 |
| 1y Target Est | 99.88 |
- Zacks
Victory Capital (VCTR) Q2 Earnings In Line With Estimates
Victory Capital's (VCTR) Q2 results reflect higher assets under management and prudent cost management, partially offset by lower revenues.
- Bloomberg
After Crushing the London Whale, a Hedge-Fund Star Lost His Way
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.In the aftermath of the financial crisis, hedge-fund titan Andrew Feldstein was hailed on Wall Street as one of the big winners.His BlueMountain Capital Management fund made $300 million in 2012 betting against a former employer, JPMorgan Chase & Co., which was embroiled in the infamous London Whale credit securities scandal. In a kind of victory lap, he was even brought in by Jamie Dimon to help the bank unwind $20 billion of those busted trades.But last week, after years of lackluster hedge fund performance, the 54-year-old Feldstein took a big step backwards. He sold his credit firm and its $19 billion asset base to an insurer, Assured Guaranty Ltd., for a bargain price of $160 million. Feldstein, a Harvard law school classmate of President Barack Obama, will now work in-house at Assured as chief investment officer.“To succeed in the asset management business, you need scale, duration of capital, and a stable, motivated talent base,” Feldstein said in an interview, explaining the sale to Assured Guaranty. “That requires investment.”BlueMountain will be getting a $500 million investment into its funds from Assured Guaranty, along with $90 million in working capital. Feldstein will receive $22.5 million of Assured stock as part of the deal.Feldstein’s comedown in part reflects struggles plaguing the hedge fund industry, which has been littered with firm closures and widespread investor redemptions, $45 billion this year alone. But interviews with a dozen industry experts and past and present BlueMountain staff also paint a picture of a firm that faced numerous strains, including recent trading missteps.PG&E BetA flop came in December when BlueMountain bet big on the comeback of utility PG&E Corp., believing liabilities from the California wildfires were overstated, according to a person familiar with the situation. PG&E filed for bankruptcy just a month later. In December PG&E’s stock plunged 10% to about $24. It’s currently trading at about $17, far below BlueMountain’s price target of more than $50 at the time. The firm is up on PG&E for the year, a person close to the fund said.“The cynical view is he’s just cashing out before things get worse,” said Jeffrey Vale, chief investment officer of Infinity Capital Partners, which invests in hedge funds.Feldstein co-founded BlueMountain in 2003 after working at JPMorgan for a decade. The fund was on a tear for its first 10 years, returning an average of 10% a year as firm assets swelled to more than $18 billion by 2013. It traded in abstruse derivative contracts such as credit-default swaps and mortgage bonds.Feldstein’s reputation wasn’t that of a typical hedge fund manager known for markets or trading savvy, people who know him say. Rather, they describe him as a business-builder who is freakishly bright, bookish and introverted, someone who responds to challenges cautiously and with deep academic study.But after the fund’s first decade that approach seemed to falter. Feldstein sold control of the firm to Affiliated Managers Group Inc., which came in as a minority investor in 2007 and later increased its stake to 54%.In May, AMG wrote down its stake in BlueMountain by $415 million. AMG said in a filing at the time that the fair value of its investment in BlueMountain “had declined below its carrying value” and that the decline was “other-than-temporary.” AMG will receive $91 million as part of the stake sale.Redemption FlowBlueMountain’s flagship Credit Alternatives fund hasn’t met its return target of 8 to 10% since 2012. It has only beaten the U.S. 10-year Treasury bond once in five years. Despite that record, the fund charges performance fees of as much as 30% -- far above the industry standard.Investors have yanked their money in recent years. Assets at BlueMountain’s hedge and opportunity funds plunged to $7.4 billion as of July from $14 billion in 2016. The flagship hedge fund in particular has lost more than $4 billion in just three years. It had just $2.6 billion as of July. Investors have asked BlueMountain for another $2 billion in redemptions over the next three years.BlueMountain had carved out an expertise in the credit space, but Feldstein had broader ambitions. It began to push into stocks, launching a long-short equity book and raising a $1 billion quant equity portfolio. Both shuttered this year. One investor who declined to be identified said he pulled money out of frustration with the firm’s move beyond credit and with its high employee turnover.“I think Andrew wanted to be a big multi-strategy manager, and I don’t think that was particularly successful,” Vale said.As the hedge funds shrank, BlueMountain’s collateralized loan obligations business grew to nearly $12 billion, making up the vast majority of the firm’s assets now. That market has been booming even as regulators have raised concerns that such investment vehicles -- which rely on highly leveraged loans -- could suffer if the economy weakens.Feldstein plans to grow BlueMountain’s CLO exposure by an additional $2 billion by mid-2020. On average, the firm’s CLO equity deals have returned 14% since 2005. While CLO fees are far lower than those for hedge funds, the business is considered lucrative because it’s easier to raise large sums of money.Dominic Frederico, Assured’s CEO, said his company looked at 60 to 70 asset management companies over three years before deciding on BlueMountain.“We found the right company with the right fit,” he said in an interview.Assured Guaranty is paying the equivalent of just 0.83% of BlueMountain’s $19 billion in total assets under management -- and about 2.2% of the firm’s hedge fund assets alone. Brookfield Asset Management Inc. paid a 6.41% price-to-AUM ratio to buy Oaktree Capital Group LLC in March, for example. And Fortress Investment Group LLC got about 4.7% of its AUM in 2017.Still, Feldstein, who once compared himself to Ulysses trying to avoid crashing his ship while charting through a rock and a hard place, remains optimistic.“I’m really excited about the transaction,” he said. “We’re completely satisfied with the purchase price.”\--With assistance from Tom Maloney.To contact the reporters on this story: Hema Parmar in New York at hparmar6@bloomberg.net;Nabila Ahmed in New York at nahmed54@bloomberg.netTo contact the editors responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net, Larry Reibstein, Vincent BielskiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- GlobeNewswire
AMG Announces Conversion Rate Adjustment for its 5.15% Junior Convertible Trust Preferred Securities Due 2037
Affiliated Managers Group, Inc. (AMG) today announced an adjustment to the conversion rate of its 5.15% junior convertible trust preferred securities due 2037 (the “junior convertible securities”). The conversion rate adjustment is being made in accordance with the indenture governing the conversion of the junior convertible securities as a result of the quarterly cash dividends paid by AMG on common shares since the fourth quarter of 2018 through the previously announced quarterly cash dividend with an ex-dividend date of August 7, 2019 to be paid on August 22, 2019. Effective immediately, the conversion rate is adjusted from 0.2525 common shares per $50.00 junior convertible security to 0.2558 common shares per $50.00 junior convertible security, equivalent to an adjusted conversion price of $195.4652 per common share, compared to the prior conversion price of $198.0198 per common share.
- Zacks
Affiliated Managers (AMG) to Sell Stake in BlueMountain
Affiliated Managers (AMG) to sell its majority stake in the alternative asset manager, BlueMountain, to Assured Guaranty.
- GlobeNewswire
AMG Reaches Agreement to Sell Equity Interests in BlueMountain
Affiliated Managers Group, Inc. (AMG) today announced that it has entered into an agreement with a subsidiary of Assured Guaranty Ltd. (AGO) and BlueMountain Capital Management, LLC, under which AGO will purchase 100% of the outstanding equity interests in BlueMountain and its associated entities. As part of the transaction, AGO will contribute cash to BlueMountain to fund its working capital needs and the repositioning of the firm. “We are pleased to have had a good partnership with BlueMountain over many years, and also that we worked closely with our long-term partners at BlueMountain to achieve an outcome that is in the best interests of BlueMountain’s clients and employees and AMG’s shareholders.
- Bloomberg
Assured Guaranty to Buy BlueMountain for $160 million
(Bloomberg) -- Assured Guaranty Ltd. has agreed to take over BlueMountain Capital Management, the $19.3 billion money manager that has come under pressure in recent months.Assured Guaranty will pay $160 million to buy out majority shareholder Affiliated Managers Group Inc. and the founders, according to a statement Wednesday, confirming a report by Bloomberg News. The insurer will also invest an additional $590 million in the firm and its funds.The sale is the latest chapter for BlueMountain, a once high-flying hedge fund firm founded by Andrew Feldstein and Stephen Siderow. In May, more than 15 years after the firm was founded, AMG wrote down the value of its stake by $415 million after determining that BlueMountain’s growth prospects had dimmed.Under the terms of the deal, Feldstein will become the chief investment officer and head of asset management at Assured, while Siderow will keep his BlueMountain role as co-president. Feldstein will receive $22.5 million of Assured Guaranty common stock as part of the deal.Assured Guaranty, which offers insurance to debt investors as well as other insurers, will get a new platform for alternative credit and a strong collateralized loan obligations business.“We have been searching for the right asset management platform for over three years, and we found it in BlueMountain, a seasoned asset management firm with a compatible credit culture, complementary market knowledge and the scale to make a material contribution to Assured Guaranty’s profitability,” Dominic Frederico, Assured Guaranty’s chief executive officer, said in the statement.Latest ChapterThe sale also comes after BlueMountain shuttered its $1 billion computer-driven portfolio and its long-short equities book this year. The firm has laid off about 75 people since December and other employees quit, according to people familiar with the matter who asked to not be identified discussing private information. BlueMountain now employs about 140 people, compared with 252 from a March filing.BlueMountain has no further restructuring plans, one of the people said. The transaction is expected to close in the fourth quarter. No decision has yet been made on whether BlueMountain will change its name.Assured Guaranty will invest $500 million in BlueMountain’s funds, CLOs and separately managed funds over three years and an additional $90 million toward working capital within a year of the deal closing.BlueMountain and AMG had been working with advisers on a sale process for AMG’s stake. AMG, an investment manager that buys stakes in other money managers, initially invested in BlueMountain in 2007. AMG’s stake in the firm was 54%, while Feldstein and his wife own 30%, one of the people said. Multiple partners own the rest. In May, AMG reported a $415 million writedown on the value of its holding in the hedge fund firm.BlueMountain was advised by Barclays Plc and Purrington Moody Weil LLP, while Assured Guaranty was advised by Goldman Sachs Group Inc., Greensledge Capital Markets LLC and Mayer Brown LLP.(Updates with details from statement starting in second paragraph.)To contact the reporters on this story: Nabila Ahmed in New York at nahmed54@bloomberg.net;Hema Parmar in New York at hparmar6@bloomberg.netTo contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Bloomberg
BlueMountain Shareholder AMG Weighs Hedge Fund Firm Exit
(Bloomberg) -- Affiliated Managers Group Inc. is exploring a sale of its majority stake in BlueMountain Capital Management, according to people familiar with the matter, after the firm took a first-quarter writedown as the hedge fund’s value fell.AMG has been working with advisers on a potential sale, said the people, who asked not to be identified as the discussions are private. AMG and BlueMountain are looking for a buyer that would invest new capital to help grow the business, they said.BlueMountain has attracted interest from potential buyers including insurers looking to add to their hedge fund capabilities, two of the people said. Some suitors have shown particular interest in the division that handles collateralized loan obligations, they said.No final decisions have been made and BlueMountain may decide to keep all or part of its stake, the people said. A representative for AMG didn’t immediately respond to requests for comment. A spokesman for closely held BlueMountain referred questions to AMG.AMG shares fell 1.2% to $80.13 in New York at 11:57 a.m. The stock has declined about 18% this year.BlueMountain’s performance in the first quarter was “really challenging,” AMG Chief Executive Officer Nathaniel Dalton said on a call with analysts at the company’s financial results in May, where it also reported a $415 million writedown on the value of its stake. AMG said in a filing at the time that the fair value of its investment in BlueMountain “had declined below its carrying value” and that the decline was “other-than-temporary.”The same month, BlueMountain also said it was liquidating its computer-driven portfolio, which people familiar with the matter said had a book size of about $1 billion.BlueMountain’s growth expectations had “declined significantly,” and its flagship product had underperformed, said AMG, which owns stakes in boutique investment managers that together oversee more than $770 billion in assets. The firm manages about $19 billion and was co-founded by Andrew Feldstein and Stephen Siderow, according to its website.It’s been losing talent, too. Omar Vaishnavi, head of fundamental credit and special situations, is leaving the firm, a representative for BlueMountain said last week. European operations chief Louisa Church left earlier this year to join Och-Ziff Capital Management Group LLC.In the past 12 months, BlueMountain has added 10 positions to teams including fixed income, health care, infrastructure and CLOs.(Updates with bidder interest in third paragraph)\--With assistance from Mark Bergen, Thomas Beardsworth, Nishant Kumar and Sridhar Natarajan.To contact the reporters on this story: Nabila Ahmed in New York at nahmed54@bloomberg.net;Hema Parmar in New York at hparmar6@bloomberg.netTo contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Amy Thomson, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Zacks
New Strong Sell Stocks for August 5th
Here are 5 stocks added to the Zacks Rank 5 (Strong Sell) List today
- TheStreet.com
AMG Offers Textbook Case of Importance of Looking to Future, Not Past
One-time items can distort annual earnings, as happened with Affiliated Managers Group, which took large non-cash asset write-downs during the fourth quarter of 2018 and the first quarter of this year.
- Motley Fool
Assets Keep Fleeing Affiliated Managers Group
The asset manager has a plan to get back in the game.
- Thomson Reuters StreetEvents
Edited Transcript of AMG earnings conference call or presentation 29-Jul-19 12:30pm GMT
Q2 2019 Affiliated Managers Group Inc Earnings Call
Motley FoolAffiliated Managers Group Inc (AMG) Q2 2019 Earnings Call Transcript
AMG earnings call for the period ending June 30, 2019.
- Zacks
Affiliated Managers (AMG) Q2 Earnings & Revenues Decline Y/Y
Affiliated Managers' (AMG) earnings decline in Q2 due to fall in assets under management balance and a tough operating backdrop.
- Zacks
Affiliated Managers Group (AMG) Beats Q2 Earnings and Revenue Estimates
Affiliated Managers (AMG) delivered earnings and revenue surprises of 4.39% and 8.31%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
- GlobeNewswire
AMG Reports Financial and Operating Results for the Second Quarter and First Half of 2019
Reports EPS of $2.11, Economic EPS of $3.33 AUM of $776 billion, pro forma for investment in Garda Capital PartnersNet Income (controlling interest) of $108 million, Economic.
- ACCESSWIRE
Affiliated Managers Group, Inc. to Host Earnings Call
NEW YORK, NY / ACCESSWIRE / July 29, 2019 / Affiliated Managers Group, Inc. (NYSE: AMG ) will be discussing their earnings results in their 2019 Second Quarter Earnings to be held on July 29, 2019 at 8:30 ...
- Moody's
Affiliated Managers Group, Inc. -- Moody's announces completion of a periodic review of ratings of Affiliated Managers Group, Inc.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Affiliated Managers Group, Inc. New York, July 26, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Affiliated Managers Group, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
- TheStreet.com
[video]Affiliated Managers Group Expected to Earn $3.19 a Share
Affiliated Managers Group revenue expected to fall 9.9% to $540.7 million.
- Zacks
What's in Store for Affiliated Managers (AMG) in Q2 Earnings?
Affiliated Managers' (AMG) top line in second-quarter 2019 is likely to benefit from past equity investments in asset management companies.
- GlobeNewswire
AMG to Announce Second Quarter Results on July 29, 2019
Conference Call Scheduled for 8:30 a.m. Eastern Time WEST PALM BEACH, Fla., July 22, 2019 -- Affiliated Managers Group, Inc. (NYSE: AMG) will report financial and operating.
- Zacks
Earnings Preview: Affiliated Managers Group (AMG) Q2 Earnings Expected to Decline
Affiliated Managers (AMG) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
- GuruFocus.com
Longleaf Partners Fund's 2nd-Quarter Commentary
Discussion of markets and holdings from fund advised by Southeastern Asset Management
- Markit
See what the IHS Markit Score report has to say about Affiliated Managers Group Inc.
Affiliated Managers Group Inc NYSE:AMGView full report here! Summary * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | PositiveShort interest is low for AMG with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. The net inflows of $3.84 billion over the last one-month into ETFs that hold AMG are not among the highest of the last year and have been slowing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Financials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to score@ihsmarkit.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
- Zacks
Affiliated Managers (AMG) Closes Garda Capital Partners Deal
Equity investment in Garda Capital will be accretive to Affiliated Managers' (AMG) earnings in the quarters ahead.
