2010 Q4 Earnings: Calamos Tops Estimates on Inflows of $300 Million

Assets under management stand at $35.4 billion, up $2.8 billion, or 9%, from the third quarter of 2010.

Calamos Asset Management reported fourth-quarter 2010 net income late Thursday of $5.8 million, or $0.28 cents a share, vs.  $4.7 million, or $0.23 cents a year ago. Revenues for the period were $86.0 million compared with $81.3 million in the fourth quarter of 2009.

Equity analysts had expected Calamos to earn $0.25 a share on sales of $84.9 million.

On Friday, the company’s shares were up about 2.7% to trade near $16.6.

About 22% Calamos’ shares trade publically, while the remaining ownership is attributed to the Calamos principals, the company says.

“The company saw an increase in assets under management throughout the quarter and generated positive relative investment performance, particularly in growth equities in the global, international and emerging market areas. We continue to execute our active, risk-managed approach to investing, which we believe provides long-term value to our clients," said John P. Calamos, Sr., chief executive officer and co-chief investment officer, in a press release.

AUM, Flows

As of December 31, 2010, assets under management totaled $35.4 billion, representing an increase of $2.8 billion, or 9%, from the previous quarter end.

The increase during the fourth quarter consisted of $2.6 billion in market appreciation and net purchases of some $300 million. Average assets under management were $33.9 billion during the fourth quarter of 2010, compared to $31.6 billion for the same year-ago period.

“Net purchases of approximately $300 million for the three months ended December 31, 2010 principally reflect net inflows into our mutual funds of $278 million and institutional separate accounts of $35 million. These inflows were consistent with recent industry trends and were comprised primarily within low-volatility equity, convertible and global strategies,” the company said in the press release.

For the year ended December 31, 2010, assets under management increased $2.7 billion, or 8%, from 2009. Over this same period, assets under management increased by $4.1 billion as a result of market appreciation, partially offset by net redemptions of $1.4 billion.

Average assets under management were $32.2 billion for 2010, compared to $27.4 billion for 2009.

“For the year ended December 31, 2010, institutional separate accounts generated net inflows of approximately $150 million. Net flows into the company's mutual funds were basically flat,” the company said.

Read AdvisorOne's 2010 Q4 earnings calendar for the financial sector for release dates and links to earnings stories.

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