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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