Affiliated Managers Adds To BlueMountain Investment

Jul 31 2012 | 10:57am ET

Affiliated Managers Group has boosted its stake in credit hedge fund BlueMountain Capital Management.

The Prides Crossing, Mass.-based firm, which invests in asset managers, said it had "significantly" increased its stake in New York-based BlueMountain, although it did not say how large its interest in the hedge fund was. Terms of the deal were not disclosed, other than that a "significant portion" of the proceeds would be invested in BlueMountain's funds.

AMG has been an equity investor in BlueMountain since 2007. As part of the deal, all eight members of the firm's management committee have signed or renewed long-term commitments to the firm, which will continue to operate independently. The increased AMG stake will not lead to any day-to-day changes in operations.

"Our goal in founding BlueMountain was to build an outstanding culture of innovation and risk management that would allow the firm to outperform and deliver strong returns for investors, regardless of market conditions," co-founder Andrew Feldstein said. "The partnership with AMG helps us execute that vision by more fully aligning management's long-term interests with those of our investors, providing capital to invest in BlueMountain products and enhancing our brand and distribution capabilities globally."

Separately, and less happily, AMG said its second quarter profit plummeted by more than 85%, from $45.5 million to $6.6 million, despite quarterly inflows to its portfolio firms of $7.1 billion, the firm's ninth consecutive quarterly net inflow. AMG's portfolio assets stand at $385 billion.

Despite the big decline, AMG's quarterly profit actually topped analysts' expectations, although its revenue did not, falling from $462.3 million to $429.6 million.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of