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Affiliated Managers Gains 7.7% YTD: Should You Buy the Stock Now?
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Key Takeaways
AMG posted 1Q26 economic EPS of $8.23, up 58% y/y, with record client inflows.
AMG expanded alternative investments through new partnerships and investments across private markets.
AMG targets at least $500M in 2026 share repurchases as alternatives drive most earnings.
Supported by a strong operating performance, strategic growth initiatives and shareholder-friendly capital allocation, shares of Affiliated Managers Group (AMG - Free Report) have gained 7.7% so far this year against the industry’s 10.5% decline and compared with the S&P 500 Index’s 11.3% rise.
Investor sentiment improved after the company reported first-quarter 2026 economic earnings of $8.23 per share, up 58% year over year, alongside record net client cash inflows and assets under management (AUM) balance of $882 billion. The stock also benefited from management's positive earnings outlook, the company’s continued expansion into alternative and private-market investments, and aggressive share repurchases.
Thus, despite a challenging asset-management environment, the above-mentioned positives reinforced confidence in AMG's ability to deliver sustained earnings growth and capital returns, supporting the price increase.
If we compare AMG’s performance with two of its close peers Janus Henderson Group plc (JHG - Free Report) and SEI Investments Company (SEIC - Free Report) , it appears that while AMG has outperformed SEI Investments, it has underperformed Janus Henderson so far this year. Shares of SEI Investments have gained 7%, whereas Janus Henderson’s stock has rallied 8.8% year to date.
YTD Price Performance
Image Source: Zacks Investment Research
Given AMG’s robust year-to-date performance, investors might be tempted to invest in the stock now. However, before making any investment decision, it is advisable to dig deep into the company’s fundamentals and growth prospects.
Key Positives of AMG
Pivot Toward Alternative Strategies: Since 2021, Affiliated Managers has been pivoting toward private markets and liquid alternatives, driving net client cash inflows in these strategies and helping offset weakness in traditional equities. The business continues to add capabilities through new investments, including BBH Credit Partners in January and HighBrook Investors in February, alongside an incremental minority investment in Garda.
Last year, AMG entered four partnerships — NorthBridge Partners, Verition Fund Management, Qualitas Energy and Montefiore Investment — adding $23 billion of AUM across private markets and liquid alternatives.
As of March 31, 2026, AMG’s affiliates managed $148 billion in private markets and $261.5 billion in liquid alternatives, with these strategies contributing the majority of earnings.
Solid Liquidity to Fund Expansion: To execute and fund its expansion plan and invest in growth opportunities, AMG has sufficient liquidity available. Since 2023, divestitures of stakes in Peppertree, Veritable LP and Baring Private Equity Asia have significantly bolstered the company’s investment capacity.
Also, in November 2025, the company offloaded its interest in Comvest Partners’ private credit business for $285 million. This move aligns with Affiliated Managers’ goal to reallocate its capital into the lucrative investment opportunities.
Management remains optimistic about finding new investment opportunities as markets face a challenging backdrop.
Decent Near-Term Inflows: While the company’s affiliates witnessed overall net outflows over the past few years, the trend has reversed of late. In 2025, the company reported $28.7 billion of net client cash inflows as it pivoted toward alternatives.
Also, in the first quarter of 2026, the company generated net inflows of $22.5 billion, although equities recorded net outflows of $9.1 billion. While a tough operating backdrop will likely keep investors on the sidelines in the near term, AMG’s differentiated product categories are expected to support cash flows across channels.
Robust Balance Sheet: As of March 31, 2026, Affiliated Managers had total debt worth $2.92 billion, and a cash and cash-equivalents balance of $376.1 million. The company has a $1.25-billion senior unsecured multi-currency revolving credit facility (maturing in 2029). The balance sheet retains flexibility through investment-grade ratings (A3 by Moody’s Investors Service and BBB+ by S&P Global Ratings) and recurring cash generation, and management continues to emphasize capital available for growth investments across new and existing affiliates.
Given its balance sheet situation, the company is expected to be able to keep enhancing shareholder value through continued capital distributions. Affiliated Managers prioritizes share repurchases over annual dividend hikes. It lowered quarterly dividends amid the COVID-19 mayhem to 1 cent per share but enhanced its share repurchase plan.
Management expects to buy back shares worth at least $500 million in 2026, up from the prior target of up to $400 million. As of March 31, 2026, 5.6 million shares remained available for repurchase.
Factors That Could Hinder AMG’s Performance
Elevated Expenses: Persistently rising operating expenses are concerning for Affiliated Managers. The company’s consolidated expenses have witnessed a five-year (ended 2025) compound annual growth rate (CAGR) of 3.6%. The uptrend persisted in the first quarter of 2026.
Overall costs may remain elevated as AMG adds new affiliates, and supports distribution and technology.
Substantial Intangible Assets: Affiliated Managers’ balance sheet has substantial intangible assets. These assets are subject to annual impairment reviews. As of March 31, 2026, intangible assets (goodwill and acquired client relationships) of $4.11 billion constituted almost 44% of total assets. A sustained decline in market valuations or affiliate earnings could increase the risk of write-downs, which would pressure results.
Affiliated Managers’ Valuation Analysis
From a valuation standpoint, AMG trades at a 12-month trailing price-to-book (P/B) of 2.07X, below the industry average of 2.91X.
P/B
Image Source: Zacks Investment Research
The stock is also trading at a discount to SEI Investments, while it's expensive compared with Janus Henderson. At present, SEI Investments and Janus Henderson have P/B ratios of 4.25X and 1.49X, respectively.
Should You Invest in AMG Stock Now?
Affiliated Managers’ shares have been on a decent run of late, backed by strong fundamentals, a robust operating performance and an upbeat management guidance. The company’s shift toward alternatives is improving flows, which is expected to further aid AUM growth.
Moreover, analysts are optimistic regarding the company’s earnings growth prospects. The Zacks Consensus Estimate for the company’s 2026 and 2027 earnings has been revised upward over the past 30 days. The 2026 estimate implies a 33.2% rise on a year-over-year basis, while 2027 earnings are expected to grow 11.6%.
Earnings Estimate Revision Trend
Image Source: Zacks Investment Research
Operating expenses remain elevated and the balance sheet carries substantial intangible assets that could be vulnerable to impairment in a weaker market environment. With the AMG stock already pricing in a lot of good news, a prudent stance is to hold existing positions and let the alternatives-led mix shift, improving flow profile and ongoing buybacks work over time.
View the Zacks #1 Rank List
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Affiliated Managers Gains 7.7% YTD: Should You Buy the Stock Now?
Key Takeaways
Supported by a strong operating performance, strategic growth initiatives and shareholder-friendly capital allocation, shares of Affiliated Managers Group (AMG - Free Report) have gained 7.7% so far this year against the industry’s 10.5% decline and compared with the S&P 500 Index’s 11.3% rise.
Investor sentiment improved after the company reported first-quarter 2026 economic earnings of $8.23 per share, up 58% year over year, alongside record net client cash inflows and assets under management (AUM) balance of $882 billion. The stock also benefited from management's positive earnings outlook, the company’s continued expansion into alternative and private-market investments, and aggressive share repurchases.
Thus, despite a challenging asset-management environment, the above-mentioned positives reinforced confidence in AMG's ability to deliver sustained earnings growth and capital returns, supporting the price increase.
If we compare AMG’s performance with two of its close peers Janus Henderson Group plc (JHG - Free Report) and SEI Investments Company (SEIC - Free Report) , it appears that while AMG has outperformed SEI Investments, it has underperformed Janus Henderson so far this year. Shares of SEI Investments have gained 7%, whereas Janus Henderson’s stock has rallied 8.8% year to date.
YTD Price Performance
Image Source: Zacks Investment Research
Given AMG’s robust year-to-date performance, investors might be tempted to invest in the stock now. However, before making any investment decision, it is advisable to dig deep into the company’s fundamentals and growth prospects.
Key Positives of AMG
Pivot Toward Alternative Strategies: Since 2021, Affiliated Managers has been pivoting toward private markets and liquid alternatives, driving net client cash inflows in these strategies and helping offset weakness in traditional equities. The business continues to add capabilities through new investments, including BBH Credit Partners in January and HighBrook Investors in February, alongside an incremental minority investment in Garda.
Last year, AMG entered four partnerships — NorthBridge Partners, Verition Fund Management, Qualitas Energy and Montefiore Investment — adding $23 billion of AUM across private markets and liquid alternatives.
As of March 31, 2026, AMG’s affiliates managed $148 billion in private markets and $261.5 billion in liquid alternatives, with these strategies contributing the majority of earnings.
Solid Liquidity to Fund Expansion: To execute and fund its expansion plan and invest in growth opportunities, AMG has sufficient liquidity available. Since 2023, divestitures of stakes in Peppertree, Veritable LP and Baring Private Equity Asia have significantly bolstered the company’s investment capacity.
Also, in November 2025, the company offloaded its interest in Comvest Partners’ private credit business for $285 million. This move aligns with Affiliated Managers’ goal to reallocate its capital into the lucrative investment opportunities.
Management remains optimistic about finding new investment opportunities as markets face a challenging backdrop.
Decent Near-Term Inflows: While the company’s affiliates witnessed overall net outflows over the past few years, the trend has reversed of late. In 2025, the company reported $28.7 billion of net client cash inflows as it pivoted toward alternatives.
Also, in the first quarter of 2026, the company generated net inflows of $22.5 billion, although equities recorded net outflows of $9.1 billion. While a tough operating backdrop will likely keep investors on the sidelines in the near term, AMG’s differentiated product categories are expected to support cash flows across channels.
Robust Balance Sheet: As of March 31, 2026, Affiliated Managers had total debt worth $2.92 billion, and a cash and cash-equivalents balance of $376.1 million. The company has a $1.25-billion senior unsecured multi-currency revolving credit facility (maturing in 2029). The balance sheet retains flexibility through investment-grade ratings (A3 by Moody’s Investors Service and BBB+ by S&P Global Ratings) and recurring cash generation, and management continues to emphasize capital available for growth investments across new and existing affiliates.
Given its balance sheet situation, the company is expected to be able to keep enhancing shareholder value through continued capital distributions. Affiliated Managers prioritizes share repurchases over annual dividend hikes. It lowered quarterly dividends amid the COVID-19 mayhem to 1 cent per share but enhanced its share repurchase plan.
Management expects to buy back shares worth at least $500 million in 2026, up from the prior target of up to $400 million. As of March 31, 2026, 5.6 million shares remained available for repurchase.
Factors That Could Hinder AMG’s Performance
Elevated Expenses: Persistently rising operating expenses are concerning for Affiliated Managers. The company’s consolidated expenses have witnessed a five-year (ended 2025) compound annual growth rate (CAGR) of 3.6%. The uptrend persisted in the first quarter of 2026.
Overall costs may remain elevated as AMG adds new affiliates, and supports distribution and technology.
Substantial Intangible Assets: Affiliated Managers’ balance sheet has substantial intangible assets. These assets are subject to annual impairment reviews. As of March 31, 2026, intangible assets (goodwill and acquired client relationships) of $4.11 billion constituted almost 44% of total assets. A sustained decline in market valuations or affiliate earnings could increase the risk of write-downs, which would pressure results.
Affiliated Managers’ Valuation Analysis
From a valuation standpoint, AMG trades at a 12-month trailing price-to-book (P/B) of 2.07X, below the industry average of 2.91X.
P/B
Image Source: Zacks Investment Research
The stock is also trading at a discount to SEI Investments, while it's expensive compared with Janus Henderson. At present, SEI Investments and Janus Henderson have P/B ratios of 4.25X and 1.49X, respectively.
Should You Invest in AMG Stock Now?
Affiliated Managers’ shares have been on a decent run of late, backed by strong fundamentals, a robust operating performance and an upbeat management guidance. The company’s shift toward alternatives is improving flows, which is expected to further aid AUM growth.
Moreover, analysts are optimistic regarding the company’s earnings growth prospects. The Zacks Consensus Estimate for the company’s 2026 and 2027 earnings has been revised upward over the past 30 days. The 2026 estimate implies a 33.2% rise on a year-over-year basis, while 2027 earnings are expected to grow 11.6%.
Earnings Estimate Revision Trend
Image Source: Zacks Investment Research
Operating expenses remain elevated and the balance sheet carries substantial intangible assets that could be vulnerable to impairment in a weaker market environment. With the AMG stock already pricing in a lot of good news, a prudent stance is to hold existing positions and let the alternatives-led mix shift, improving flow profile and ongoing buybacks work over time.
Investors should avoid initiating a new position until the company delivers additional proof of durable revenue growth. At present, AMG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.