Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, recently released its Q1 2021 Investor Letter, a copy of which you can download here. The fund posted a return of 18.22% for the quarter, outperforming its benchmark, the S&P 500 Index which returned 6.18% in the same quarter. You should check out Longleaf Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q1 2021 Investor Letter, the fund highlighted a few stocks and Affiliated Managers Group Inc. (NYSE:AMG) is one of them. Affiliated Managers Group Inc. (NYSE:AMG) is a global asset management company with equity investments in investment management firms. In the last three months, Affiliated Managers Group Inc. (NYSE:AMG) stock gained 37.1% and on April 19th it had a closing price of $156.92. Here is what the fund said:
“Affiliated Managers Group (46%, 2.68%), the diversified asset management holding company, was also a top contributor. Our appraised value increased nicely, driven by a 10% growth in AUM to $716 billion and a massive share repurchase (22% of shares outstanding annualized) to take advantage of the stock’s depressed FCF multiple. The market fixated on AMG’s net outflows last year, but 95% of flows came from quantitative strategies that only contribute around 3% of AMG’s proportionate EBITDA due to their lower average fees and ownership interest. The other 97% of AMG is performing very well, particularly the company’s private market strategies, wealth management and specialty fixed income. AMG also added two new opportunistic acquisitions with Boston Common Asset Management and Jackson Square Partners.”
Longleaf Partners Fund has been a long time Affiliated Managers Group Inc. (NYSE:AMG) bull. In December 2020, we shared Longleaf Partners Fund’s bullish AMG’s thesis in this article.
Our calculations showed that Affiliated Managers Group Inc. (NYSE:AMG) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.
