During the month of December, model managers Ascendere Associates added several new financial stocks to their Systematic Long-Only model. In this model, the goal is to find stocks and ADRs that illustrate the potential for growth at a reasonable price with a market cap of more than $2.5 billion. Ascendere Associates uses both personal judgment and quantitative data to determine which positions to add to the model.
One of the first new positions added to the model was T Rowe Price Group Inc (NASDAQ: TROW). On October 22nd TROW released their quarter three 2010 financial results. In the report, they noted that the company’s revenues from investment advisory services increased 20 percent over the same quarter of 2009. They also noted a $48.6 billion dollar increase in assets under management. After this news the stock price started a steady ascent, rising from a closing price of $52.70 on October 21st to $60.46 on November 5th. Then the price dipped and on December 1st, the date that Ascendere Associates added shares to the model, the closing price had fallen to $59.46. On December 10th, the TROW had a closing price of $63.02.
Another position added to the model this month was Waddell and Reed Financial Inc (NYSE: WDR). WDR announced their quarter three 2010 financial results on October 26th. In the report they showed increased net income but reduced sales when compared to the same quarter of the prior year. Industry-wide they seemed to be outperforming their peers in some areas since they show inflows during the third quarter of 2010 exceeding average industry estimates by 1.3 percent. WDR had a closing price of $27.34 on October 25th but after the quarterly results the price climbed, eventually reaching $32.31 on November 5th. Prices then declined and the stock had a closing price of $32.10 on the date it was added to the model. On December 10th, WDR closed at $34.54.
*All prices courtesy of Yahoo! Finance.