(Bloomberg) ? W.P. Stewart & Co., a Bermuda-based money manager for wealthy investors, said fourth-quarter profit rose 8.5 percent as fees and commissions increased.

Net income advanced to $10.2 million, or 23 cents a share, from $9.4 million, or 21 cents, a year earlier, the company said in a statement.

Earnings excluding non-cash costs were 26 cents a share, below analysts? estimates of 28 cents a share, and the stock fell 9.9 percent, the biggest percentage drop since July 2002.

Investors withdrew a net $187 million from W.P. Stewart?s funds during the fourth quarter.

The company is seeing ?early positive signs? this month of net inflows to its funds, deputy chairman John Russell said on a conference call with analysts. Earnings are ?improving? in the first quarter, he said.

W.P. Stewart didn?t benefit as much as competitors like Legg Mason Inc. and Affiliated Managers Group Inc. from the stock market?s gain after three years of declines.

The Standard & Poor?s 500 Index rallied 26 percent last year and assets under management at W.P. Stewart increased 12 percent to $8.6 billion.

Shares of W.P. Stewart fell $2.26 to $20.60 at the close of composite trading on the New York Stock Exchange.