Asset managers shares improve with market

Shares of asset managers trended higher Monday with the broader stock markets and mixed analysts reports that were mostly positive but citing some weaknesses in the sector.

New York-based Fortress Investment Group rose 13 percent, or 22 cents, to $1.98, recovering some downward movement from last week. Shares hit a new 52-week low of $1.47 last week after the company announced it suspended fund redemptions. The company had received requests for $3.51 billion worth of redemptions, nearly wiping out the funds' current assets.

Jeffries & Co. Inc. analyst Daniel Fannon reduced earnings estimates for the company on Monday, lowering the 2008 estimate to 16 cents per share from 18 cents and the 2009 estimate to 26 cents from 30 cents.

The reduction reflects Fannon's view of the impact on earnings from recent redemptions and expected write-downs in private equity portfolio losses in the fourth quarter.

Invesco Ltd. shares rose 10 percent, or $1.25, to $13.65.

Sandler O'Neill & Partners analyst Michael Kim maintained a "Buy" rating on the company, saying he's confident it can generate above average assets under management and earnings per share growth regardless of market conditions.

Waddell & Reed Financial Inc. rose 9.8 percent, or $1.20, to $13.48. Kim upgraded the company to "Hold" from "Sell".

Franklin Resources climbed 6.2 percent, or $3.81, to $65.62 and T. Rowe Price Group Inc. rose 4.1 percent, or 1.41, to $36.22.

Kim affirmed his sell rating on both companies saying performance and flow trends are weakening.

Janus Capital Group Inc. shares were trading 1 cent higher at $8.05. Kim downgraded the company to "Hold" from "Buy" saying, the market sell-off combined with the company's underperformance has hurt its earnings power.