Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Mark Finkelstein - FPK.
Mark Finkelstein - FPK
I guess, Doug, you mentioned that the calling of the firms was still kind of ongoing. Can you give any metrics around how many more firms are targeted and I guess what the revenues of those firms are roughly?
Doug Hammond
I mean, we’re looking probably at around 30 firms’ total, that we have expect to complete by the end of the year, possibly a couple more that will carryover to 2010 and from a revenue standpoint I’d say sort of generally immaterial revenues.
Jessica Bibliowicz
As Doug mentioned Mark, the big ones are completed and so we’re really just finishing up the last ones now.
Mark Finkelstein - FPK
The remaining ones I guess, just to clarify so the view is that the amount of gross margin that they contribute is minimal as well then, that your paths are once had actually in a negative position.
Doug Hammond
Yes.
Jessica Bibliowicz
That’s right.
Mark Finkelstein - FPK
I guess, thinking about the operating expenses at the firm level, is that level of expenses sustainable? I think the ratio was little bit below what I was expecting, I’m just curious if there is anything else going on that we shouldn’t be thinking about that level and that’s kind of a baseline starting point.
Doug Hammond
Yes, I mean I think we’ve gone through a pretty rigid planning process this year and that we’re starting our planning for next year on the budgeting right now. I think the firms have just gotten very focused on sort of what they need to serve their business.
There are some seasonality with respect to the fourth quarter that relates to just what we’ve typically experienced at the end of the year, higher volume, which could sort of move up the numbers a bit in the fourth quarter, but I do think sort of on an organic basis running forward. The firms are, very disciplined in terms of sort of how they’re going to make expense decisions into 2010 and we’ll be tracking that very closely.
Mark Finkelstein - FPK
Then just on the management fee percentage, I know you’ve kind of made some changes to kind of target levels. I mean should we expect that management fee percentage to kind of move back end at the 46% plus level over the next couple of quarters? It’s been trending below that for last couple, I’m just curious, when we should expect that to kind of move back into normalized levels?
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