Profits down 34 percent at Gamco
-
- November
- 7
Profits dropped 34 percent at Gamco Investors Inc. during the third quarter as the global financial crisis and one of the steepest stock market selloffs since the Great Depression hurt companies that manage investments.
Gamco, the Rye-based investment company founded by famed money manager Mario Gabelli, manages private investment accounts, mutual funds and offshore funds.
Gamco’s net income for the third quarter fell to $12 million from $18.3 million a year earlier. Earnings per share dropped to 43 cents from 64 cents. The company’s assets under management, $25.6 billion, were 19.1 percent below levels a year earlier.
Gamco, like most other asset managers, said it experienced net outflows of client assets during the third quarter. The outflows are occuring as nervous investors struggle with a challenging market environment that has pushed the S&P 500 index down nearly 37 percent for the year.
“Given global equity markets, we are strengthening our research, portfolio management and client service skill sets while rebalancing all non-investment related spending,†Chief Financial Officer Jeffrey M. Farber said in written statement.
This entry was posted
on Friday, November 7th, 2008 at 7:07 pm by Jay Loomis.
You can follow any responses to this entry through the RSS 2.0 feed.
Print
| 
Email
