Kayne Anderson Raises Stake in Eaton Vance

It takes one to know one?

Century City-based money manager Kayne Anderson Rudnick Investment Management has snapped up a bigger piece of mutual fund firm Eaton Vance Corp., according to recent filings with the Securities and Exchange Commission.

Kayne Anderson, which also manages mutual funds, raised its holdings of Boston-based Eaton Vance to 5.88 million shares as of Jan. 20 from 3.66 million shares a year ago, filings show.

With an 8.5% stake, Kayne Anderson is the company’s second-largest shareholder, behind former Eaton Vance Chairman Landon Clay, who owned 7.75 million shares as of October.

Kayne Anderson fund manager Bob Schwarzkopf bought more Eaton Vance stock after investors added cash to Kayne Anderson’s own mutual funds and managed accounts, spokeswoman Sharon Bray said.

Increasing the stake “is related to the need to put new cash to work, buying more of what they already own,” Bray said.

Eaton Vance shares, which closed down 46 cents at $26.64 on the New York Stock Exchange on Monday, have fallen from a peak of $40.71 in April 2002. The firm manages about $56 billion.

Eaton Vance stock is priced at about 15 times analysts’ average estimate for 2003 earnings per share. That is below the price-to-earnings ratios of some larger fund companies.