1/23/10

Hi,

Make your own top (in tiers) of investment management companies.

Comments (22)

In reply to Gray Fox
Best Response
8/7/14

I'm fairly familiar with Capital, though I've never worked there. I think the prestige really stems from their investment process, as well as the fact that they are a private company with over a trillion in AUM, which makes the economics pretty juicy for everyone relative to other big publicly traded long-onlys.

Things like a sizable research portfolio (signals conviction), portfolio counselor approach (e.g. 6-8 PMs each investing in their highest conviction ideas), truly global collaboration (enabled by best-in-class teleconferencing infrastructure), and a fairly 'academic' culture that encourages dissenting opinions make them much more likely to outperform over the long-run. If you meet some of their analysts, you will likely be very impressed. Whether its a guy that's been covering Indonesian equities for 25 years and is well connected to all of the political families, or some of their very senior tech ppl that have been around since eToys was still a good idea... they are sharp, and yet extremely approachable. That's not to say you won't find great career analysts at Fido, Putnam, TRowe, FranklinTempleton, Dodge etc., but it is just the norm over there.

You will get a lot of guys that will walk away from Citadel or Soros offers to join Capital, which is not really the case at other MFs in my experience. All that said, I agree that their performance has been slipping the past few years. If they can't correct that they will likely see some decent outflows. But given their process, I wouldn't really bet against them over a 10 yr horizon.

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1/23/10

What really matters in AM? Returns? Assets under management? Compensation? Location of head office? I'm not going to nit-pick through top-tier firms, but I'd say all of these are pretty solid:

Pimco, Wellington, GSAM, BGI/Blackrock, Western Asset Management, JPMAM, Fidelity, Alliance Bernstein, ING Investment Management, Schroeders

1/23/10
1/24/10

Tough one,
Each company has good funds and not so good funds
You can't rank on presitge in this industry, its about performance. figure out the style you are interested in: equity vs. fi vs. alt then equity = lcg, lcv etc... You'll see its not a simple ranking

1/25/10

I agree with LAWM in that it varies by product and client type. In ternms of large, active, institutional AM firms, I would go with PIMCO, Wellington, GSAM, Blackrock, JPMAM, and AllianceBernsterin from Brotherbear's list. It is nearly impossible to make compensation comparisons. They aren't all taking in a large analyst class each year like BBs do for IB. For experienced hires, they all pay market rates for the given position.

PIONLINE.COM has rankings by AUM. This can give you a sense of what funds these firm's manage. Of course, size doesn't mean prestige or even compensation.

1/25/10

yup, some are good at FI, some at territories, caps blah blah..
but i think in general PIMCO and blackrock are pretty good... goldman as well

templeton, julius baer have their own strengths as well

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2/7/10

Under GSAM, I'm being offered:
1. Investment Partners (IP)
2. Global Solutions Partners (GSP) - Portfolio Management
3. Private Equity Group (PEG)

and I'm being told if I start in one, I'll be able to laterally transfer to the other. Not sure if this actually possible??
Which would be most enjoyable since I can do all three?

2/8/10

I wouldn't take the "lateralling" too literally.

They tell kids going into pwm that they can lateal to ibd or s&t

In reply to thisguy
7/29/14

Which one did you end up joining? Just curious to know what made you choose one over other.

In reply to thisguy
7/29/14

thisguy:

Under GSAM, I'm being offered:

1. Investment Partners (IP)

2. Global Solutions Partners (GSP) - portfolio management

3. Private Equity Group (PEG)

and I'm being told if I start in one, I'll be able to laterally transfer to the other. Not sure if this actually possible??

Which would be most enjoyable since I can do all three?


Which one did you end up joining? Just curious to know what made you choose one over other.
7/29/14

I think in terms of pure investment firms: PIMCO, Fidelity, Wellington, TRowe, BlackRock usually take the top spot. If you include banks JPM/GS would be in there for sure.

8/6/14

I find it interesting that in all these posts the most coveted AM firm hasn't even been mentioned.

In reply to ibleedexcel
8/6/14

ibleedexcel:

I find it interesting that in all these posts the most coveted AM firm hasn't even been mentioned.

Bernard L. Madoff Investment Securities?

8/6/14
In reply to Gray Fox
8/6/14

He's probably referring to Capital Group or Dodge&Cox.

In reply to ibleedexcel
8/6/14

ibleedexcel:

I find it interesting that in all these posts the most coveted AM firm hasn't even been mentioned.

What is: the Capital Group.

8/6/14

assuming we're not including hedgies in here

Perkins
Brandes
Davis (abysmal performance recently, but stellar long term)
Templeton
EIC (small company out of Atlanta, great performance and philosophy though)
Royce (great for small caps)

for bonds:

nuveen
PIMCO
met west/tcw
doubleline

"The four most dangerous words in investing are: 'this time it's different.'" - Sir John Templeton

"The investor's chief problem - and even his worst enemy - is likely to be himself." - Benjamin Graham

In reply to ibleedexcel
8/6/14

ibleedexcel:

I find it interesting that in all these posts the most coveted AM firm hasn't even been mentioned.

Lumina Investments?

In reply to Dr.Seuss
8/6/14

we're not including elite hedge funds

"The four most dangerous words in investing are: 'this time it's different.'" - Sir John Templeton

"The investor's chief problem - and even his worst enemy - is likely to be himself." - Benjamin Graham

8/7/14

Can somebody explain why Capital Group is so well respected? I know the America growth funds are big and they have been around a long time, but the returns don't seem out of this world. Legitimately curious, not trying to hate at all.

In reply to Gray Fox
8/7/14

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"The four most dangerous words in investing are: 'this time it's different.'" - Sir John Templeton

"The investor's chief problem - and even his worst enemy - is likely to be himself." - Benjamin Graham

In reply to jankynoname
8/7/14

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