Money Manager GLG Partners Shares Fall

GLG Partners shares fell 41 cents, or 3.3 percent, to $12.20 in afternoon trading.

Citi analyst Prashant A. Bhatia assigned an initial rating of "Hold" with a $13 price target.

Bhatia said in a research note that as asset managers' funds increase in size, earnings performance tends to slow.

GLG Partners 2007 revenue was also significantly helped by the company's hugely successful emerging markets fund. The emerging markets fund accounted for about 30 percent of total revenue in 2007 because of 55 percent growth. That amount of growth for the fund is unlikely to continue in 2008, Bhatia wrote in the note.

GLG Partners is in good shape to expand within the United States though, Bhatia wrote. Virtually none of GLG Partners' assets are sourced in the United States. The company's recent listing on the New York Stock Exchange is likely to be a catalyst toward the firm creating a presence domestically, he added

"In our view, the lack of penetration into such a large marketplace should be viewed as a positive, as GLG Partners can leverage its existing talent, products, and brand to quickly expand into the U.S.," Bhatia said.

Bhatia estimates GLG Partners will earn $1 per share in 2008, including earnings of 9 cents per share during the first quarter. He estimates 2009 earnings will total $1.10 per share.