Janus Capital Group Inc. said its third-quarter net income more than doubled from a year earlier, to $25.4 million, or 16 cents a share, though clients assets dropped along with the stock market.

Gary Black, the Denver asset management firm's chief executive officer, said it will cut its work force to lower spending "in light of the challenging environment."

The latest results, released Wednesday, included investment writedowns and mark-to-market losses of 12 cents a share. The results for the third quarter of last year included a loss of 22 cents a share from discontinued operations, as well as a mark-to-market gain of a penny a share.

Revenue fell 3.2%, to $275.4 million.

Analysts polled by Thomson Reuters on average had expected Janus to report earnings of 24 cents a share on $280 million of revenue.

Total assets under management fell 23% from a year earlier and 16% from the second quarter, reflecting a decline in fund values and $5.1 billion of outflows, including $4 billion from money market funds, Janus said.

The company had finally clawed its way back from the blow-up of tech stocks, in which it had invested heavily in the 1990s. But in August fund consultants and brokers began pulling back as a result of big energy and foreign stock bets that were heading south.

Observers say the financial crisis is making matters worse for Janus and other asset managers, because the bear market has pushed investors to flee stock funds.

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