Organic growth and a diversified business strategy are key strengths for T. Rowe Price Group, Inc. TROW. However, elevated operating expenses and increased dependence on investment advisory fees might affect the company’s financials in the near term.The company’s net revenues witnessed a compound annual growth rate (CAGR) of 12.1% over a five-year period (ended 2021). While the same decreased in the first half of 2022 due to the impact of declining markets on the assets under management (AUM) balance, the company’s strategy to enhance investment capabilities and expand the distribution channels will keep supporting long-term revenue growth.After completing the OHA acquisition in December 2021, T. Rowe Price expanded its offerings in the alternative investment market space. As the company continues to shift its mix toward international growth funds, this will likely help increase both revenues and investment management margin in upcoming periods.T. Rowe Price is a debt-free company with a strong liquidity position, which supports its capital deployments. In fact, it has hiked quarterly dividends every year since its IPO in 1986. Also, the board of directors exercised several shares repurchase plans consistently. Thus, such efforts reflect the company’s commitment to enhancing shareholder value.However, rising operating expenses are a major concern for the company. Expenses saw a four-year (2018-2021) CAGR of 9.6%. As TROW continues to incur expenses to attract new clients and make additional investments from existing clients, its ability to expand the bottom line might get hampered.T. Rowe Price’s major chunk of revenues comes from investment advisory fees. This type of strong dependence might affect the company’s financials in the near term because the AUM changes with market fluctuations, regulatory changes, or a sudden slowdown in business activities.Further, the bulk of assets managed by T. Rowe Price is invested in U.S. equities, which seems to be another concerning factor. Despite the company’s effort to adopt various strategies to diversify its product mix, concentration in U.S. equities is a significant risk that could result in erratic asset flows.Shares of this Zacks Rank #3 (Hold) company have lost 37.1% compared with the 12.6% decline recorded by the industry. Image Source: Zacks Investment ResearchStocks to ConsiderA couple of better-ranked asset management stocks are PennantPark Floating Rate Capital Ltd. PFLT and Blue Owl Capital Inc. OWL. Currently, PFLT and OWL carry a Zacks Rank # 1 (Strong Buy) and 2 (Buy), respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.Pennant Park’s current-year earnings estimates have been revised 2.5% upward over the past 30 days. PFLT’s shares have lost 5.2% over the past year.The consensus estimate for Blue Owl Capital’s current-year earnings has been revised 1.9% north over the past 30 days. Over the past six months, OWL’s shares have gained 3.8%. Want to Know the #1 Semiconductor Stock for 2022? Few people know how promising the semiconductor market is. Over the last couple of years, disruptions to the supply chain have caused shortages in several industries. The absence of one single semiconductor can stop all operations in certain industries. This year, companies that create and produce this essential material will have incredible pricing power. For a limited time, Zacks is revealing the top semiconductor stock for 2022. You'll find it in our new Special Report, One Semiconductor Stock Stands to Gain the Most. Today, it's yours free with no obligation.>>Give me access to my free special report.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report PennantPark Floating Rate Capital Ltd. (PFLT): Free Stock Analysis Report Blue Owl Capital Inc. (OWL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research