Top 9 Undervalued Asset Management Stocks to Buy

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

Stock Upside Potential: 27.91%

Forward Price to Earnings Ratio: 8.73

Number of Hedge Fund Holders: 10

Affiliated Managers Group Inc. (NYSE:AMG) is one of the top undervalued asset management stocks to buy. Following Affiliated Managers Group’s third-quarter results, Jefferies raised its price target on November 4 from $276 to $282 while keeping a Buy rating. The firm also revised its earnings estimates upward, projecting $8.62 per share for Q4 2025 and $28.17 for 2026, citing strong momentum in AMG’s alternative investment business and increased share repurchases.

Jefferies pointed to AMG’s active pipeline of new investment opportunities and its focus on product innovation and distribution as key factors supporting future growth. These elements, combined with higher exit AUM levels, were seen as distinguishing AMG from its industry peers.

Affiliated Managers Group Inc. shared its third-quarter update on November 3, reporting earnings of $4.82 per share, below the $5.87 estimate, and revenue of $516.4 million, missing projections. As of September 30, AMG managed around $804 billion in assets, partnering with about 40 independent firms. The company’s earnings are now largely driven by its alternatives business, which it plans to grow further, especially in the U.S. wealth market. For Q4, AMG expects adjusted EBITDA between $325 million and $370 million, with economic EPS ranging from $8.10 to $9.26.

CEO Jay Horgen highlighted the company’s strategic focus on expanding its footprint in alternative investments, including a new collaboration with BBH and an investment in BBH Credit Partners. These moves aim to develop new products for the US wealth market, leveraging BBH’s credit expertise and AMG’s distribution strength. With a healthy balance sheet and rising cash flow, AMG sees room to drive long-term value and further earnings growth.

Earlier on October 1, Affiliated Managers Group Inc. entered into a strategic collaboration with Brown Brothers Harriman. The two are joining forces to meet the growing demand for structured and alternative credit solutions in the US wealth market.

Affiliated Managers Group Inc. (NYSE:AMG) is an independent investment management company that invests in and partners with a range of independent, partner-owned investment firms, collectively referred to as Affiliates. It provides centralized support in areas like strategy, distribution, product development, and operations, while also offering growth capital and succession planning solutions.