5 Revealing Analyst Questions From Affiliated Managers Group’s Q3 Earnings Call

Core Insights - Affiliated Managers Group (AMG) reported mixed results in Q3, with strong momentum in alternative asset strategies despite revenue falling short of Wall Street expectations [1] - The quarter's performance was driven by record net inflows in alternative products, significant growth at affiliates Pantheon and AQR, and ongoing expansion of alternative assets under management [1] - CEO Jay Horgen highlighted a 17% year-over-year increase in EBITDA and a 27% growth rate in economic earnings per share [1] Financial Performance - Revenue for Q3 was $528 million, compared to analyst estimates of $535.6 million, reflecting a 2.2% year-on-year growth but a 1.4% miss [5] - Adjusted EPS was $6.10, exceeding analyst estimates of $5.88 by 3.7% [5] - Adjusted EBITDA reached $250.9 million, surpassing analyst estimates of $241.9 million, with a margin of 47.5% [5] - Operating margin decreased to 28.8%, down from 34.2% in the same quarter last year [5] - Market capitalization stands at $7.37 billion [5] Analyst Insights - Questions from analysts focused on the depth of AMG's new affiliate pipeline and the rationale behind the Brown Brothers Harriman partnership, with management citing strong momentum in alternatives as a driving factor [5] - Early guidance for 2026 was discussed, with expectations for margin expansion at AQR and Pantheon to positively impact results [5] - Concerns regarding the sustainability of liquid alternative inflows, particularly at AQR, were raised, with management emphasizing AQR's first-mover advantage [5] - Upcoming private markets fundraises were addressed, with consistent momentum at Pantheon and other affiliates noted as supporting future fundraising activity [5]