A fresh pair of eyes is now watching the asset management industry on behalf of Citigroup. Keith Walsh, a 10-year Citi vet, is now covering U.S. asset managers. He takes over from Prashant Bhatia, who left Citi in November.

Citi resumed its coverage of asset managers with Walsh's note to clients dated March 4.

"We see no reason to step into this group aggressively until markets stabilize and EPS revisions bottom out," Walsh stated.

Walsh has a buy rating on BlackRock, and a sell rating on Legg Mason and Franklin Resources.

BlackRock, he said, is an "AUM magnet" that capitalizes on its reputation in the institutional channel and its presence in the fixed income space.

Legg Mason, meanwhile, faces "significant challenges across the board," Walsh said. As for Franklin, Walsh pointed to weaker relative performance and slowing global markets as headwinds for the firm.

He issued a "hold" rating on Invesco, AllianceBernstein, Federated Investors, T. Rowe Price Group and Waddell & Reed Financial. 

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