William Katz of Citigroup on Thursday introduced a pair trade between Overweight-rated Affiliated Managers Group AMG and Underweight-rated T. Rowe Price Group TROW given a “favorable trade-off” between the two Asset Managers.
Katz offers four reasons for the pair trade:
Market News and Data brought to you by Benzinga APIs- AMG is better aligned to the “shifting landscape” for Asset Managers given its global boutique alpha generation platform as opposed to T. Rowe Price's “Style-Box” profile.
- The near-term flow dynamics tilt in AMG's favor.
- AMG offers better “bang for the buck” capital return along with a superior earnings per share compounded annual growth rate through 2017.
- Relative upside favors AMG.
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