Affiliated Managers Closes Three Major Investment Deals

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Affiliated Managers Group Inc. AMG announced the completion of three major agreements to acquire equity stakes in Systematica Investments LP, Ivory Investment Management, L.P. and Abax Investments (Pty) Ltd. The new investment initiatives were announced by the company in November 2015.

Affiliated Managers acquired the majority of BlueCrest Capital Management LP's equity interest in Systematica, which is a technology-driven firm mainly focused on extensive application of science and technology in the investment process. After becoming an independent organization in January 2015 following its separation from BlueCrest, Systematica offers a number of distinctive strategies, including trend-following and quantitative equity investing in both traditional hedge fund vehicles as well as liquid alternatives.

The company also acquired an equity interest in Ivory, which manages assets across long/short equity and long-only investment strategies, with the principal investment objective of delivering high absolute returns on a risk-adjusted basis, with low correlation to market indices.

Moreover, the company acquired equity interest in Cape Town, South Africa-based Abax, which specializes in South African equity, fixed income, and strategic and tactical asset-allocation strategies, as well as a separate global equity strategy.

As part of the transactions, senior partners of all the three above-mentioned firms have agreed to long-term commitments with Affiliated Managers. The financial terms of the deals were not disclosed.

While the recent investments are expected to further diversify and increase its earnings power, Affiliated Managers with a strong balance sheet and liquidity position has considerable capabilities to invest in other companies. The company is targeting investments in alternatives and global strategies, given the strong preference of investors for the same.

Currently, Affiliated Managers carries a Zacks Rank #3 (Hold). Some better-ranked investment management firms include Federated Investors, Inc. FII , Janus Capital Group, Inc. JNS and Waddell & Reed Financial, Inc. WDR . All these stocks sport a Zacks Rank #2 (Buy).

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WADDELL&REED -A (WDR): Free Stock Analysis Report

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AFFIL MANAGERS (AMG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Business , Investing , Stocks
Referenced Symbols: WDR , FII , AMG

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