About AFFILIATED MANAGERS GROUP
Affiliated Managers Group, Inc., through its affiliates, operates as an asset management company providing investment management services to mutual funds, institutional clients, and high net worth individuals in the United States. It provides advisory or subadvisory services to mutual funds. These funds are distributed to retail and institutional clients directly and through intermediaries, including independent investment advisors, retirement plan sponsors, broker-dealers, major fund marketplaces, and bank trust departments. The company also offers investment products in various investment styles in the institutional distribution channel, including small, small/mid, mid, and large capitalization value and growth equity, and emerging markets.
In addition, it offers quantitative, alternative, and fixed income products, and manages assets for foundations and endowments, defined benefit, and defined contribution plans for corporations and municipalities. Affiliated Managers Group provides investment management or customized investment counseling and fiduciary services. Affiliated Managers Group, Inc. was formed in 1993 and is based in West Palm Beach, Florida with additional offices in Prides Crossing, Massachusetts; Stamford, Connecticut; London, United Kingdom; Dubai, United Arab Emirates; Sydney, Australia; Hong Kong; Tokyo, Japan, Zurich, Switzerland and Delaware.
AMG operates in the Finance, Insurance, And Real Estate | Trading | headquartered in West Palm Beach, Florida | approximately 3,950 employees | led by CEO Jay C. Horgen.
The $6.8B question: What happens when a company this good becomes this expensive?
On Wall Street, there are companies that move money, and then there are companies that are the money. AFFILIATED MANAGERS GROUP, INC. falls squarely into the latter category — a financial infrastructure so embedded in the global economy that to bet against it feels almost like betting against commerce itself.
At $6.8B in market capitalization, AFFILIATED MANAGERS GROUP, INC. (AMG) currently ranks #75 in our quantitative model, with a composite score of 78.5/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives AMG the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 77/100 | 30% | Strong |
| Value | 80/100 | 15% | Attractive |
| Momentum | 92/100 | 25% | Accelerating |
| Investment | 38/100 | 10% | Low |
| Stability | 45/100 | 10% | Volatile |
| Short Interest | 49/100 | 10% | Normal |
The quality score of 77/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 20.3%
- Net Margin: 39.1%
- Gross Margin: N/A
These aren't just good numbers. They're the kind of numbers that make AMG a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like AMG."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. AMG is quality defined.
- Momentum is real. With a momentum score of 92/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 12.8x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
AFFILIATED MANAGERS GROUP, INC. is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, AMG is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 78.5/100 | Rank: #75 of 3,571 stocks
Sector: Financials
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.