One of the innovative growth stories of the mutual fund industry is WisdomTree [profile]. Yet, the third quarter market downdraft put that growth into reverse. WisdomTree CEO Jonathan Steinberg disclosed Friday that the Manhattan mutual fund firm saw its AUM slip $1.7 billion to $11.2 billion from $12.9 billion at the end of June.

Steinberg's focus, however, was on WisdomTree's 4.1 percent share of ETF flows during the past quarter. That was up from a 2.6 percent share of the ETF net flows industry wide during the same period in 2010.

For a stock sold as a growth play -- and priced as such -- growing market share is a key variable.

Yet, the inflows of $179 million during the quarter could not overcome $1.9 billion of market losses in the portfolios managed at WisdomTree. Total inflows into the mutual fund firm's ETFs were $3.1 billion, showing that the churn in the products remains high.

WisdomTree also showed a positive bottom line. It earned $2.2 million in the third quarter, a strong turnaround from a $7 million loss reported a year ago. 

Edited by: Sean Hanna, Editor in Chief


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