UPDATE 3-AMG profit tops view; buying UK fund manager

* Cash earnings $1.36/share; Street view $1.31/share

* Buying UK fund manager Artemis

* Shares up 5.1 pct
(Recasts 1st paragraph to add acquisition, adds CEO interview,
updates share move; changes dateline from NEW YORK)

BOSTON, Feb 1 (BestGrowthStock) – Affiliated Managers Group Inc
(AMG.N: ), a holding company for money managers, beat quarterly
earnings estimates on Monday and disclosed a deal for a London
asset manager as it pursues an overseas expansion strategy.

In foreign markets “there is more room to grow,” Chief
Executive Sean Healey told Reuters in an interview. He said AMG
will still have $750 million left for acquisitions after it
completes the purchase of a majority stake in Artemis
Investment Management Ltd of London.

The deal is the latest for a foreign investment manager by
Boston-based AMG.

The company’s fourth-quarter profit (Read more your timing to make a profit.) was helped by strong
performance at some of the asset management firms in which it
holds stakes.

Net income was $24.6 million, or 55 cents per share,
compared with a loss of $83.7 million, or $2.12 per share, a
year earlier.

Cash earnings per share rose to $1.36 from $1.32. On that
basis, analysts had expected $1.31, according to Thomson
Reuters I/B/E/S. AMG shares were up 5.1 percent to $63.67 in
morning trading.

AMG owns stakes in money manager Third Avenue Management,
hedge fund firm AQR Capital Management and others.

AMG and Artemis’ management are buying the UK fund manager
from BNP Paribas Group’s (BNPP.PA: ) Fortis Bank unit. Exact
terms of the transaction were not disclosed. But Healey said
the price was “at the low end” of the range AMG has paid in
past deals — between eight and 10 times earnings before
interest, taxes and depreciation.

The deal will give AMG a majority stake in Artemis, with
the fund manager’s management team taking an equity ownership
stake as well as day-to-day operational responsibility.

Stock Report
(Reporting by Christian Plumb and Ross Kerber, editing by
Gerald E. McCormick and John Wallace)

UPDATE 3-AMG profit tops view; buying UK fund manager