Fund Firms to Suffer Market Hangover

Asset managers' earnings reports will flood in this week, and analysts have ratcheted down expectations for the period because of the market's weakness and lingering questions about rising interest rates and a broader economic slowdown.

But even as asset managers might have been burned in the second quarter by the market's decline and lighter cash flows from investors, analysts say the sector's recent woes have sent the lofty stocks to more reasonable prices.

The slew of fund manager reports kicks off with Legg Mason(LM Quote) and Waddell & Reed(WDR Quote) on Tuesday. Calamos Asset Management(CLMS Quote) and AllianceBernstein(AB Quote) follow on Wednesday. ...