Bermuda-based money manager W.P. Stewart & Co. is reviewing "strategic alternatives" after its assets under manager management dropped 20 percent last quarter and 50 percent last year.

The company announced last night has it hired Merrill Lynch & Co. as an adviser and is in discussions with number of parties.

And it added that because of the review, it would postpone issuing its fourth-quarter results, that were due to come out today. A new results date will be announced in the next 10 days.

W.P. Stewart said there was no guarantee the discussions with third parties would be successful and added that "in the coming months the company will focus on rationalising its expense base".

The company's assets under management fell to $4.1 billion at the end of 2007, compared to $5 billion at the end of the third quarter and $8.1 billion at the end of 2006.

Bill Stewart, the company's chairman and chief executive officer, said: "Since new management took over about a year ago, primary attention was focused on the investment process. The firm's US investment universe has been significantly expanded; the underlying 'look-through' earnings growth rate increased and client accounts, as measured by our US Equity Composite, have significantly out-performed the S&P 500 Index over the past eight months.

"Clients' US portfolios are currently priced at what we believe are extremely attractive levels and we expect substantial appreciation over the next few years."