Waddell & Reed Shares Fall On Downgrade

However, he noted Waddell & Reed's stock has outperformed its peers over the past three months; in the year to date shares are up 20 percent.

Analysts at Keefe, Bruyette & Woods said in a note to investors that they expect most traditional asset managers to see a modest increase in assets under management as a result of the rebound in stocks over the last several weeks. That could contribute to higher 2009 and 2010 profit estimates.

"However, we think many asset management stocks have moved too far too fast..." they said.

Elsewhere in the sector, several asset managers saw a slight downturn while others gained slightly.

Shares of Raymond James Financial Inc. fell 8.6 percent to $16.33, Blackrock Inc. fell 86 cents to $127.72 and Federated Investors Inc. fell 17 cents to $21.54.

Those gaining ground included T. Rowe Price Group Inc., which rose nearly 2 percent, or 54 cents, to $29.41 and Calamos Asset Management Inc., which climbed 5.5 percent, or 29 cents, to $5.57.