10 Best Stocks to Buy According to John W. Rogers of Ariel Investments

4. Affiliated Managers Group Inc. (NYSE:AMG)

Ariel Investments’ Stake as of Q4: $263.3 million

Number of Hedge Fund Holders: 34

Affiliated Managers Group, Inc. (NYSE:AMG) is an investment management firm that offers investment management services to mutual funds, institutional clients, retails, and high-net-worth individuals in the United States through partnerships with high-quality independent partner-owned firms, known as ‘Affiliates’.

Affiliated Managers Group, Inc. (NYSE:AMG) announced fourth-quarter 2024 earnings of $6.86 per share, exceeding consensus projections of $6.02. However, the company’s revenue fell short of expectations, totaling $502.7 million compared to the expected $531.53 million. In a separate strategic move, AMG expanded its $500 million Equity Distribution Program, allowing the company to sell shares through several financial institutions.

Affiliated Managers Group, Inc. (NYSE:AMG) recently agreed to acquire a minority share in Verition Fund Management, one of the fastest-growing hedge funds. As a result of the sale, AMG plans to diversify its portfolio in alternative investments, although it will not be involved in making investment choices for the hedge fund.

Horos Asset Management stated the following regarding Affiliated Managers Group, Inc. (NYSE:AMG) in its Q3 2024 investor letter:

“This quarter, we reduced our stake in Affiliated Managers Group, Inc. (NYSE:AMG), a U.S.-based company that invests in other asset management firms, following its strong performance and its relatively lower attractiveness compared to new alternatives added to the portfolio.”