Market Gains and Favorable Currency Offset Outflows and Divestitures in AMG's Q4

While there was little in narrow-moat-rated Affiliated Managers Group's fourth-quarter results that would alter our long-term view of the firm, we do expect to raise our fair value estimate 5%-10% to account for higher levels of AUM at the start of 2023 than we had been expecting. AMG closed out December 2022 with $650.8 billion in managed assets, up 1.0% sequentially but down 20.0% year over year. Absent the detraction from the firm's sale of its equity stake in Baring Private Equity Asia, which reduced AUM by $31.6 billion in mid-October, managed assets would have been up 5.9% sequentially and down just 16.1% year over year.