Monday, May 13, 2013

'Masters Of The Universe' Are Mastering New Weight Classes

According to Forbes: “….Asset management firms have taken a page out of the books of the companies in which they invest. They are starting to look a lot more like General Electric than Tiger Management. The key components of the new management style – product integration, consolidation, distribution, and branding — are a major focus for firms that not too long ago prided themselves on their secrecy and anonymity.

“It’s through brand-building and consolidation that these firms are implementing a “barbell” approach to raising capital: Targeting traditional multi-million dollar investors such as pension funds and endowments while offering products to retail investors at the same time.  It’s not a split focus so much as it is a way to divide the risk while increasing the potential for rewards. Money managers are now forging relationships with retail platforms, Registered Investment Advisors, and in some cases even with individuals directly.  For an industry that once prided itself on its adherence to tradition, this new approach constitutes a major change in the institutional money management game……”

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