Guardian Unlimited- Affiliated Managers Group, a holding company for money management firms, said on Thursday it paid an undisclosed sum for an equity stake in hedge fund ValueAct Capital.
Beverly, Massachusetts-based AMG, which began taking stakes in hedge funds in 2004, said it bought out the former outside investor in the $6 billion San Francisco-based hedge fund.
ValueAct, well known for big bets on companies with low stock prices like Misys Plc and Martha Stewart Living Omnimedia Inc, said its investment partners, including the fund’s founders, will stay on. Fund managers including Jeffrey Ubben, George Hamel and Peter Kamin all signed long-term employment contracts.
The deal with AMG will allow ValueAct to better position itself for the future, Ubben said. And for AMG, which has $286 billion in assets, the deal marks the latest in a string of hedge fund investments that AMG President and CEO Sean Healey expects will continue.
“AMG’s investment in ValueAct Capital enhances our position in the fast-growing alternative investments area, and we see additional opportunities for continued growth in this segment,” Healey said.
