Affiliated Managers Group (AMG): A Strategic Buy for 2026 Amidst Strong Earnings, AUM Growth, and Analyst Optimism

Affiliated Managers Group (AMG) has emerged as a compelling investment opportunity in 2026, driven by its disciplined capital allocation strategies, robust earnings growth, and expanding assets under management (AUM). As a global leader in partnering with independent investment firms, AMG's focus on alternative assets and shareholder returns positions it to capitalize on evolving market dynamics while delivering long-term value creation.

Earnings Momentum and AUM Expansion

AMG's financial performance in 2025 underscores its strategic shift toward alternative investments, which have become a cornerstone of its growth. As of September 30, 2025, the company reported total AUM of $803.6 billion, driven by $9 billion in net client cash inflows, primarily into private markets and liquid alternatives. This momentum is further amplified by strategic partnerships, with projections indicating an additional $24 billion in AUM growth from affiliates like AQR and Pantheon.

Analysts highlight AMG's strong third-quarter earnings as a catalyst for its stock reaching a 52-week high. For 2025, projected earnings per share (EPS) of $22.86 represent a significant year-over-year increase. The company's fourth-quarter guidance also signals optimism, with economic earnings per share expected to rise from $6.53 in Q4 2024 to between $8.10 and $9.26 in Q4 2025. These figures reflect AMG's ability to convert strategic reallocations into tangible financial results.

Capital Allocation: Share Repurchases and Dividends

AMG's capital allocation framework is a critical driver of its long-term value proposition. The company has consistently prioritized returning excess capital to shareholders through share repurchases and dividends. In 2025, AMG repurchased $350 million in shares during the first nine months and committed to at least $500 million in full-year repurchases. This disciplined approach is supported by a strong balance sheet, with $476.1 million in cash and equivalents as of September 30, 2025.

The company's quarterly dividend program further reinforces its commitment to shareholder returns. By maintaining a consistent payout while reinvesting in high-growth affiliates like Northbridge Partners and Verition, AMG balances immediate returns with long-term compounding potential. This dual focus on capital efficiency and strategic deployment has attracted analysts who maintain "Buy" or "Outperform" ratings despite some cautious "Hold" outlooks amid macroeconomic uncertainty.

Analyst Optimism and Strategic Positioning

Analyst sentiment remains largely bullish on AMG's trajectory. Projections for 2025 performance fees-ranging between $110 million and $150 million-underscore the company's ability to monetize its alternative investment expertise. Additionally, AMG's expansion into the U.S. wealth channel, which added over $40 billion in alternative AUM by late 2024, positions it to benefit from growing demand for diversified, uncorrelated returns.

While market conditions remain fluid, AMG's proactive approach to capital allocation and its focus on high-conviction investments in private markets and liquid alternatives provide a buffer against volatility. The company's recent investments in Qualitas Energy and other affiliates are expected to add $18 billion in AUM, further diversifying its revenue streams.

Conclusion

Affiliated Managers Group's combination of strong earnings growth, strategic AUM expansion, and disciplined capital allocation makes it a standout candidate for 2026. By leveraging its partnership model to deploy capital into high-growth affiliates while returning value to shareholders, AMG is well-positioned to outperform in a market increasingly prioritizing alternative assets. For investors seeking a balance of immediate returns and long-term compounding, AMG represents a strategic buy.