T. Rowe's 1Q profit climbs 6 percent despite tough economy

Kennedy said economic data in the context of an economy in which many companies and investment funds are trying to sell their assets suggest the U.S. "will be hard-pressed to avoid a recession."

The U.S. economy "will likely remain weak for some time," Kennedy said. Still, the company's fund managers are finding more attractive prices for certain kinds of investments and Kennedy expects the outlook to improve by the end of the year.