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Calamos Asset Management Inc. Reports Operating Results (10-Q)

November 04, 2010 | About:
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10qk

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Calamos Asset Management Inc. (CLMS) filed Quarterly Report for the period ended 2010-09-30.

Calamos Asset Management Inc. has a market cap of $250.9 million; its shares were traded at around $12.15 with a P/E ratio of 15.1 and P/S ratio of 0.9. The dividend yield of Calamos Asset Management Inc. stocks is 2.4%.CLMS is in the portfolios of Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, Mario Gabelli of GAMCO Investors.

Highlight of Business Operations:

Similarly, the increase in security valuations positively impacted our mutual fund assets under management by $1.0 billion through the nine months ended September 30, 2010, compared to an appreciating market of $5.3 billion during same period of 2009. Net redemptions in our mutual funds were $301 million for the nine months ended September 30, 2010 and represent an unfavorable change of $396 million from net purchases of $95 million in the same period of 2009. Our global strategies recorded year-over-year increases in net sales of $574 million. This increase was more than offset by a decrease in our Convertible Fund net sales, which were $1.5 billion less for the nine months ended September 30, 2010 than the same period of 2009.

Separate accounts, which represent managed accounts for both institutions and individuals, had combined net redemptions of $258 million and $1.4 billion during the third quarter and year-to-date period ended September 30, 2010, respectively, compared to net redemptions of $302 million and $710 million during the respective prior-year periods. The net outflows from our managed accounts in the current year were impacted by $1.3 billion in net redemptions as a result of our decision in the

first quarter of 2010 to increase the account minimums for our convertible-based strategies on separately-managed account platforms. This effort was completed in the second quarter of 2010. We expect no further redemptions as a result of this strategic initiative. The managed account outflows were partially offset by net inflows of $119 million within our institutional accounts for the nine months ended September 30, 2010, compared to $274 million of outflows in the comparable prior-year period. Institutional accounts generally have long and varying lead times before funding occurs which creates fluctuations in sales volumes. Separate accounts were favorably impacted by market appreciation of $875 million and $510 million during the three and nine months ended September 30, 2010, respectively, compared to market appreciation of $960 million and $1.9 billion during the three and nine months ended September 30, 2009, respectively.

Operating income grew to $30.6 million for the third quarter of 2010, compared with $27.4 million for the same period a year ago. Operating margin improved to 39.0% for the third quarter of 2010 from 37.1% for the year-earlier period. Operating income for the nine months ended September 30, 2010 grew by 47% to $90.8 million from $61.9 million for the same period a year ago. Operating margin was 37.8% for the nine months ended September 30, 2010, a significant improvement over 30.9% for the year-earlier period.

Non-operating income (loss), net of non-controlling interest in partnership investments increased income by $3.6 million for the third quarter of 2010 and decreased income by $8.1 million for the third quarter of 2009. Non-operating income (loss), net of non-controlling interest in partnership investments increased income by $15.1 million for the nine months ended September 30, 2010 and decreased income by $3.9 million in the nine months ended September 30, 2009. For both periods compared, the

Total revenues increased by $4.6 million, or 6%, to $78.4 million for the three months ended September 30, 2010 from $73.8 million in the comparable prior year. For the nine months ended September 30, 2010, total revenues increased by $39.6 million, or 20%, to $240.0 million from $200.4 million in the comparable prior year. The increase was primarily due to higher investment management fees.

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