Affiliated Managers 3rd-qtr net drops 42 percent

Affiliated Managers Group Inc., an asset-management firm headquartered in Beverly, said today that its third-quarter profit fell 42 percent as investors pulled money out amid the recent market turmoil, but adjusted results beat Wall Street expectations.

Net income for the three months fell to $24.8 million, or 69 cents per share, compared with $42.6 million, or $1.07, for the prior-year period. Revenue slid 16 percent to $290.8 million from $345.6 million.

Cash earnings per share, which adds back certain expenses, fell 16 percent to $1.31 from $1.56 a year earlier. Analysts polled by Thomson Reuters, on average, expected a profit of $1.24 per share on revenue of $284.4 million. Analysts typically do not include certain expenses and gains in their estimates.

Sandler O'Neill analyst Michael Kim said the better than expected cash earnings per share figure likely reflected performance fees during the quarter.

Assets under management fell to $219.3 billion from $286 billion last year. The company said clients pulled about $5.9 billion out of various holdings, including $4.7 billion taken out of institutional channels, $951 million from money markets, and $338 million from high net worth channels. Kim said the institutional channel declines likely reflected a movement away from alternative investments, which would include things like hedge funds. He kept a "Hold" rating and $55 price target on the shares.

In midday trading on the New York Stock Exchange, Affiliated Managers shares fell $4.73, or 9 percent, to $45.34, after earlier dropping to $45.45, its lowest point in four years. The stock traded as high as $135 a year ago, and is down more than 57 percent this year. (AP)