AMG buys fund run by ‘two of the greatest investors of this generation’

Affiliated Managers Group Inc. has added one of the top large-cap managers to its collection of boutique affiliates. AMG announced today it has acquired a majority stake in Yacktman Asset Management Co., adviser to the $7.5 billion Yacktman Fund (YACKX).

AMG acquired a stake in wealth management firm Veritible LP in March. But the Yacktman acquisition is the first deal with a boutique firm in more than a year.

Chief investment officer Jay Horgen said that with assets beginning to rise due to the recent market rally, and volatility stabilizing, the firm is seeing more independent firms looking for partners. “As things stabilize, this could be the beginning of a trend,” he said.

Over the past 15-, 10-, and five-year periods, the Yacktman Fund has been the top-performing large-cap blend fund, according to Morningstar Inc. Donald Yacktman and his son, Stephen Yacktman, co-managers of the fund, were nominated for Morningstar’s fund manager of the decade award in 2009 and as fund managers of the year in 2011.

“From our perspective, the Yacktmans are two of the greatest investors of this generation,” said Mr. Horgen.

The Yacktmans will retain control of all investment decisions and day-to-day management of the fund and its sister fund, the $5.9 billion Yacktman Focused Fund Ticker:(YAFFX), which has also been among the top performing large-cap blend funds over the past five and 10 years.

The Yacktmans and other members of the Yacktman team signed 10-year employment agreements to remain at the company as part of the sale. “AMG’s partnership approach has been a proven business model for successful boutique firms like ours,” the company said in a statement on its website. “We plan to use the [AMG] structure to, over time, recruit, train and retain investment professionals in our investment approach.”

AMG is also affiliated with, among others, boutiques AQR Capital Management, Tweedy Browne Co. LLC, and Third Avenue Management.