Affiliated Managers Group: Rising Markets Have Led to a 10% Increase in Our Fair Value Estimate

We've increased our fair value estimate for narrow-moat-rated Affiliated Managers Group to $168 per share from $152 to account for revised near-term expectations for assets under management revenue, and profitability since our last update. With the US equity markets rising 12% in the fourth quarter of 2023, and the credit markets also rising 7%, AMG reported a 6% increase in its AUM during the period. This left the firm in a better position than we had been expecting coming into 2024, allowing us to raise our fair value estimate by 10%.