What happened
Shares of the investment management firm Affiliated Managers Group(NYSE: AMG) traded nearly 10% higher as of 12:15 p.m. ET on Monday after the company reported earnings results for the third quarter.
So what
Affiliated Managers reported adjusted earnings per share of $4.21 on total revenue of more than $575 million in the third quarter, with both numbers beating analyst estimates.
CEO Jay Horgen said in an earnings statement, "While impacted by ongoing client de-risking, particularly within global equities, net client cash flows improved in the quarter and included strong inflows in our alternative strategies."
Affiliated Managers did see its total assets under management decline from nearly $691 billion in the second quarter to $644.6 billion in the third quarter, but it has not been uncommon for asset managers to see outflows this year.
In the quarter, Affiliated Managers sold its minority interest in Baring Private Equity Asia, which will improve the company's financial flexibility and enable it to invest back into the business. It also repurchased roughly $80 million of its own stock in the quarter.
Now what
Affiliated Managers delivered a solid quarter amid a difficult backdrop for the asset management space.
The company also made some moves in the quarter that will give it more opportunity to deploy capital into attractive opportunities that might arise, so the company looks well positioned right now.
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Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool recommends Affiliated Managers Group. The Motley Fool has a disclosure policy.
