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

September 2012

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

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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