by Mary Claire Kendall

Created on: January 22, 2012   Last Updated: February 05, 2012

In the depths of the Great Depression, Thomas Rowe Price, Jr. bet on his own ingenuity and the American economy by founding T. Rowe Price (TROW), a financial services holding company based in Baltimore, Maryland. 

With a degree in chemistry, Price headed for Wall Street during the 1920's and gradually, according to Investopedia, developed "his own unique investment strategy that helped him and many others achieve superior returns."  His alchemy was simple. First, employ "proprietary research for his investment picks.”  Second, throw out the standard old practice of charging a commission on securities investments and, instead, charge a fee on assets under management.  As the customer thrived, so would T. Rowe Price.  

And, so they did.  As of September 30, 2011, the company was managing nearly $454 billion in assets.

This success is the fruit of Mr. Price’s “disciplined investment approach”—the “core” of which endures to this day— namely “long term focus, proprietary research, and prudence risk management," as T.Rowe Price's "History"underscores.

T.  Rowe Price provides investment advisory services in its sponsored mutual funds and other investment portfolios to individuals and institutional investors in the US, Europe, Middle East, Africa and the Asia Pacific. The Company, notes Reuters, "operates its investment advisory business through its subsidiary companies, primarily T. Rowe Price Associates, Inc. and T. Rowe Price International Ltd, formerly T. Rowe Price Global Investment Services Limited" and "manages a range of United States and international stock, blended asset, bond, and money market mutual funds and other investment portfolios of individual and institutional investors.” In early 2010, the company “completed the acquisition of 26% interest in UTI Asset Management Company” and by year’s end had “completed an international reorganization where all of the Company’s international operations were consolidated under T. Rowe Price International Ltd.”

Reuters rates T. Rowe price a “buy” because of its solid approach and corresponding growth.

T. Rowe Price’s main pure asset management competitors, both in the United States and globally, include: 

* Alliance Bernstein (AB), still trying to “regain its magic touch,” according to Business

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