AMG's Q2 2025 Earnings Call: Unpacking Contradictions in AQR's Capacity, Strategic Focus, and Share Repurchase Plans

Strong Alternative Growth and Revenue Contribution:
- AMG reported year-over-year growth of 15% in economic earnings per share and more than $8 billion in net client cash flows, driven by record inflows into alternative strategies.
- The growth was driven by the company's strategic focus on allocating capital and resources to secular growth areas, particularly in private markets and liquid alternatives.

Increased Alternative Asset Under Management:
- AMG added approximately $55 billion in alternative assets under management in the first half of 2025, increasing total alternative AUM by 20%.
- This increase was fueled by new partnerships, organic growth, and strong performance from affiliates like Pantheon and AQR, which are capitalizing on trends in alternative strategies.

Expansion in Private Markets:
- The company's private markets AUM grew by 50% since 2022, reaching $150 billion, with significant contributions from fundraising led by Pantheon.
- This expansion is supported by investor demand for private market solutions and AMG's strategic allocation of capital to partnerships in this area.

Capital Allocation and Share Repurchase:
- AMG committed nearly $1.2 billion across growth investments and share repurchases in the first half of 2025, with approximately $273 million repurchased year-to-date.
- The company is balancing growth investments with share repurchases, focusing on areas of secular growth and returning capital to shareholders through buybacks.