UPDATE 3-AMG quarterly profit down, stock up

(Adds revised forecast, new analyst comment, CEO comment)

By Muralikumar Anantharaman

BOSTON, July 23 (Reuters) - Affiliated Managers Group Inc (AMG) (AMG.N), a U.S. holding company for money managers, posted weaker second-quarter earnings on Wednesday as assets fell but its stock rose as the numbers beat forecasts and as the firm unveiled two new acquisitions.

AMG, which owns stakes in value equities firm Third Avenue Management, hedge fund AQR Capital Management and other asset managers, said it is buying stakes in two investment firms for unspecified sums that would give it an additional $13 billion in assets and contribute to earnings this year.

"The results were solid in a tough market," said D.J. Neiman, analyst at William Blair & Co, who called the numbers a "relief".

AMG's second-quarter net income fell to $35.3 million, or 89 cents per share, from $41.9 million, or $1.04 per share, in the year-ago quarter.

Cash earnings per share, a measure used by analysts and preferred by the company, fell to $1.43 from $1.52 in the year-ago quarter. Analysts on average were expecting $1.41.

Cash earnings are made up of net income plus amortization and deferred taxes related to intangible assets, plus affiliate depreciation, according to AMG.

AMG reduced the cash earnings forecast range for the full year to between $6.40 to $7.00 per share from between $6.70 to $7.40 it had forecast in April, due to the stock market's drop. The forecast assumes stock markets grew by 2 percent in the third and fourth quarters.