Is it a Wise Choice to Invest in AMG?

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Longleaf Partners Fund declined 0.53% in the first quarter, holding up better than the S&P 500, which fell 4.60%. In a volatile quarter for markets across the globe, its companies made solid progress across the board. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Longleaf Partners Fund mentioned Affiliated Managers Group, Inc. (NYSE:AMG) and explained its insights for the company. Founded in 1993, Affiliated Managers Group, Inc. (NYSE:AMG) is a West Palm Beach, Florida-based international investment management company with a $4.7 billion market capitalization. Affiliated Managers Group, Inc. (NYSE:AMG) delivered a -25.35% return since the beginning of the year, while its 12-month returns are down by -28.00%. The stock closed at $122.80 per share on July 07, 2022.

Here is what Longleaf Partners Fund has to say about Affiliated Managers Group, Inc. (NYSE:AMG) in its Q1 2022 investor letter:

“AMG – In one of the bigger disconnects between stock price performance and appraisal value growth, AMG declined in line with a generic US money manager, correlating to the S&P 500. AMG’s reality is much more compelling, given its managers are a diversified mix of US and Global public equities, private equity, wealth management, and fund-of-funds. Our appraisal grew strongly in the quarter as private equity affiliate Baring Asia sold for 30xEBITDA (earnings before interest, taxes, depreciation and amortization) or mid-teens expected 2023 earnings (more than double where AMG is valued today) for a combination of cash and EQT AB shares.”

Photo by AlphaTradeZone

Our calculations show that Affiliated Managers Group, Inc. (NYSE:AMG) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Affiliated Managers Group, Inc. (NYSE:AMG) was in 31 hedge fund portfolios at the end of the first quarter of 2022, compared to 32 funds in the previous quarter. Affiliated Managers Group, Inc. (NYSE:AMG) delivered a -9.06% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Affiliated Managers Group, Inc. (NYSE:AMG) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.