AMG

Anyone know anything about this firm? I've been networking lately and someone put me in touch with someone from at the firm. I don't know too much about their operations and what they do. Seems like an asset manager that buys up other asset managers. I searched the forum but couldn't find anything about it. Any info would be helpful. Thanks in advance.

 
shialadouche:
Seems like an asset manager that buys up other asset managers.
That's exactly what they do. It's a publicly traded firm, so you should be able to find a decent amount of information about what they do and who they own stakes in (Third Avenue, AQR, Tweedy/Browne, Yacktman, among others).

Typically, they are buying a piece of the firm from an older person (usually the founder) and spreading out the equity so that a larger number of employees can participate in their firm's future success. They have a diagram of a typical deal on their website here:

http://www.amg.com/NewInvestments/InvestmentStructure/

Personally, I think it's a really interesting business model.

 

Thank you for the response. I also read up on the firm on their website, but I guess what I am trying to ask is if this is a good opportunity to speak to this guy? Is this a nice firm to be at?

How much market research are these guys doing or is it just based on manager performance and setup more like a fund of funds for AM instead of HF? I guess that is a question I will have for the guy when I speak to him.

Any more insight from anyone would be appreciated.

 

I am confused as well. I can't decide whether it is a FoF, or could be classified as an asset manager that does sort of like FIG investing?

Hard to tell whether or not the research involved would be with the funds performance or the overall returns of the businesses they invest in...

"History doesn't repeat itself, but it does rhyme."
 

I passed interviewing b/c of location and what the work entails (lesser extent, even though I'd probably be really good at it too). The work isn't bad at all, but it isn't what I was looking for. I think it's more like a FoF with a higher emphasis on numbers as opposed to purely manager analysis so relatively decent opportunity.

If you have a description of position I'd be sure to show some of the qualifications they highlight since they're not quite the norm. And no I am not going to send anyone this info.

 
Best Response
shialadouche:

Thank you for the response. I also read up on the firm on their website, but I guess what I am trying to ask is if this is a good opportunity to speak to this guy? Is this a nice firm to be at?

How much market research are these guys doing or is it just based on manager performance and setup more like a fund of funds for AM instead of HF? I guess that is a question I will have for the guy when I speak to him.

Any more insight from anyone would be appreciated.

You're evaluating the businesses of the asset managers because you receive cash flow from their operations. They are buying private stakes in businesses that happen to be asset managers/hedge funds. I think it's very interesting. If I was a billionaire I would be doing this and seeding start up managers.
 

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