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Affiliated Managers Raises Stake in AQR Capital, Shares Up - Analyst Blog

Affiliated Managers Group Inc. ( AMG ) yesterday announced that it entered an agreement with AQR Capital Management, LLC, facilitating its shares to rise by around 7% at the end of the trading session. The transaction will augment Affiliated Managers' minority investment in the leading investment management firm and also its affiliate.

In 2004, Affiliated Managers had acquired stake in AQR Capital, marking its entry into hedge fund management. The company will continue to hold equity interest in the hedge fund manager subsequent to the agreement, which is expected to be closed by Dec 31 this year.

Affiliated Managers expects this enhanced stake to boost its economic earnings per share by 60 cents in 2015. On the other hand, AQR Capital's principals will continue operating its business independently with majority interest remaining with them. Moreover, the after-tax net proceeds from the current deal will be utilized by AQR Capital in its business.

AQR, with around $115 billion in assets under management as of Sep 30, 2014, offers a range of quantitatively driven hedge fund and traditional investment instruments to both institutional clients and financial advisors. This strategic partnership is expected to be beneficial for both the companies.

Currently, Affiliated Managers holds a Zacks Rank #4 (Sell). Some better-ranked investment management firms include Monroe Capital Corporation ( MRCC ), Ameriprise Financial, Inc. ( AMP ) and BlackRock, Inc. ( BLK ). While Monroe Capital carries a Zacks Rank #1 (Strong Buy), Ameriprise and BlackRock sport a Zacks Rank #2 (Buy).

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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.


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

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