Play the Rebound With Asset-Manager Stocks

Shares of firms that manage investments fell hard in 2008 but should rise quickly as the market recovers.

Whether your mutual fund soars in value or drops like a stone, you still must pay fees to the manager of the portfolio, quarter after quarter, year after year. That's one of the reasons why the business of managing other people's investments is such a good one.

Asset-management firms are often found among the stock market's top performers. Boston-based Eaton Vance, for example, was the top-performing U.S. stock during the 18-year period stretching from April 1979 to October 2007, producing an annualized 32% return, according to merchant bank Grail Partners.

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Contributing Editor, Kiplinger's Personal Finance