Shares Of Asset Managers Rise On March Gains

NEW YORK (AP) — Shares of asset managers rose Thursday as investors were encouraged by the industry's March performance, but Goldman Sachs analysts warned of remaining challenges ahead.

While "less worse" than the previous quarter, analysts Marc Irizarry, Alexander Blostein and Neha Killa wrote they expect first-quarter earnings to remain disappointing.

They noted that that the 24 percent rally in stock prices the group saw in March was a surprise and that equity flows improved from last quarter. But redemptions from worried investors remain at negative levels, they wrote.

"The near-term fundamental picture for the asset managers remains negative," they said.

Goldman lowered its earnings per share estimate by 9 percent for the group.

Goldman also removed BlackRock from the "America's Conviction Buy List" ahead of what's expected to be a tough first-quarter earnings season, but retained the "Buy" rating on the stock.

Investors remained upbeat about the group, however.

Shares of BlackRock Inc. rose $5.47, or 4.2 percent, to $136.16, while T. Row Price Group Inc. shares rose $1.88, or 6.6 percent, to $30.92.

Legg Mason Inc. stock rose $1.86, or 11 percent, to $18.26 and AllianceBernstein Holding LP shares rose $1.73, or 11 percent, to $16.93.

Shares of Pzena Investment Management Inc. rose 10 cents, or 5.3 percent.