Obviously, the market carnage toward the end of last year was pretty devastating for asset managers. As assets sank, so did their stocks. But it also prompted some cost-cutting and a renewed drive toward efficiency, all of which helped lay the groundwork for an eventual recovery--which may or may not be underway. 

Some analysts, like those at Standard & Poor's equity side, seem to think the worst may be over. Assets for the firms it rates dipped 13 percent, which took down the top-line 30 percent in the quarter that ended in March. But there are some bright spots. Invesco, for example, benefited from $9 billion in net inflows in the first quarter. The subsequent rally was more than welcome. The issue is whether all this will keep up. There are lots of opportunities regarding the PPIP and the TALF and of course there's always the chance of some mergers. 

For more:
- here's S&P's take via Business Week

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