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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (33148)	12/29/2008 7:25:23 PM
From: Paul Senior	Respond to of 78655

FII. Good question for which I don't have such a good answer. The money market business issues are not just FII specific, but affect all such asset managers. If the business goes away and not just awry, all will suffer. FII has recently made some acquisitions of other types of asset managers (funds which specialize in shorting, for example), and I expect equity funds to be the profit generators going forward.

To: Spekulatius who wrote (33148)	8/6/2009 5:08:03 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78655

Asset managers: FII. At current price and time, decided after all I don't like that most of FII assets managed are money market funds. I'm selling most of my position today; buying asset manager AMG now. AMG was the one to buy at the time - has been at least a triple from the lows then. Didn't see it or wasn't aware of the company at the time. Shoulda been - they own Tweedy Brown, Third Ave, others. My general rule, from the past anyway, is that asset managers are undervalued when they sell below 2% of assets under management. An adjustment should perhaps be made (but I will not) for debt instruments (bond funds/money market funds) which are less valuable than equity (stock) funds or private managed accounts. With AMG aum total now of $178.7B and 42M shares out., I calculate and claim that AMG is still undervalued until AMG is at 2% aum per share at $84.8/sh. AMG closed today at $68.20. finance.yahoo.com