Empowering Boutiques: The Rise of the Specialist Manager (State Street)

September 2012

KEYWORDS: risk management, boutique asset managers, Economist, asset allocation, alpha, global financial crisis, portfolio diversification, asset managers, assets under management, AUM, alignment of interests, market participants, Asia Pacific, European Union, Exchange-Traded Funds, ETF, innovation, Hedge Fund Regulation, hedge fund investor, Hedge Fund IT, Eurozone, Institutional Investors, strategy, foreign exchange

Authors:

State Street

Organizations:
  • State Street

Summary:

Many investors are turning to smaller, specialist boutique asset managers to give them timely exposure to new sources of alpha and fast-growing niche markets, as they seek to counter the current low yield environment. Drawing on the findings of State Street’s 2012 Global Survey of Boutique Asset Managers conducted by the Economist Intelligence Unit, we examine the threats and opportunities for boutique asset managers [investment managers with $1 billion – $50 billion in assets under management]. What emerges from the 164 boutiques interviewed is an awareness of their opportunities in the current investment climate, but also the need to overcome limitations in their internal systems.

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