Asset manager Affiliated Managers Group's AMG.N shares rose 4.2% to $354.71.
The stock slipped 7% on Tuesday after Bloomberg News reported that U.S. Treasury officials had raised concerns about several Wall Street tax strategies, saying it may be "too good to be true".
The products under scrutiny include so-called 351 conversions, box-spread exchange-traded funds, products that offset ordinary income, and funds that avoid dividend income by flipping between other ETFs, the report said.
AMG owns a stake in quant hedge fund AQR Capital Management, which offers so-called tax-aware strategies such as AQR TA Delphi Plus Fund.
"We believe the weakness in AMG in particular is overdone - as the move seemingly suggests 100% of the firm's tax-aware platform would be at risk," TD Cowen analyst Bill Katz said.
"We suspect the bulk of AMG's exposure centers on regular way tax loss harvesting strategies, seemingly beyond the purview of the scrutiny".
Up to last close, AMG stock was up 18.1% year to date.
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