A stock-market recovery and an improved investment climate contributed to a better earnings performance at Gamco Investors Inc., the Rye-based firm founded by money manager Mario Gabelli.
While net income dropped 8.3 percent at Gamco during the second quarter compared to a year earlier, that was a rebound from the 22 percent plunge in first-quarter earnings, when Gamco and other major investment firms were navigating through one of the worst bear markets since the Great Depression.
Since the stock market hit its lows on March 9, the S&P 500 index of large company stocks has gained 50 percent on growing optimism that a recovery in the economy and housing markets is taking root.
At Gamco, the market rebound helped to fuel a jump of 15.5 percent in assets under management since March 31. Gamco’s institutional and private wealth management business ended the quarter with $8.8 billion in separately managed accounts, up 17.3 percent over the same period.
Over half of Gamco’s mutual funds performed in the top half of their Lipper categories over one-, three-, five-, and ten-year periods, the company said.
“Our investment performance was strong leading to substantial increases in assets under management on a sequential basis,” Chief Financial Officer Jeffrey M. Farber said in a written statement. “We continued our cost reduction efforts during the second quarter recognizing reductions in general and administrative costs.”
Farber added that Gamco continues to evaluate acquisition opportunties to enhance its business.
Gamco’s net income totaled $13.3 million in the second quarter, or 48 cents a share, compared to $14.5 million, or 51 cents a share, a year earlier.