Best positioned LOs in current industry environment?
Obviously the secular environment is tough for long only asset management, but these challenges are not homogenously distributed across managers. Which asset managers are best / worst positioned in terms of performance and asset flows?
D&C and Artisan international value come to mind as funds that are looking good. TRP and Sequoia less so.
Thoughts?
Ideally, large-scale, privately owned, and with a track record of outperforming their benchmark. And strong/dominant in asset classes that are more insulated from passive like fixed income
That being said, to have a successful career it's more about your individual performance as an investor, not as much the strength of the firm. Being at a top firm doesn't necessarily make you a better investor or give you job security.
I would really try and find a firm that has good culture, where you can learn a lot and people care about you.
Do any specific shops come to mind?
Any thoughts on diversified shops (t rowe, wellington, capital, etc.) vs. ones that are more specialized (d&c, baron, royce, lazard, artisan, etc.)?
I get what you're saying about the importance of individual skill vs employer prestige. the reason i ask is bc I'm an associate thinking about where I'd want to take an analyst role where I could potentially spend a big chunk (or all) of my career
You mentioned a lot of them. I don't have a list or know enough about others to comment.
There are pretty limited seats at all these places so I would try for them all. I don't think you can go wrong here. Working for a "sub-scale" or mid-sized platform doesn't mean you're going to lose your job in the future. No one knows the future. And no one knows when something big will happen.
When you talk to them you get a feel for the culture and who you'll be working with which is the most important aspect in my mind.
Mega shops:
Less familiar with the smaller funds you mentioned but tend to agree with the consensus that if you have a differentiated strategy and performance is good, if not I’d worry about the longevity of even the really strong brands in this cohort
I think those are the big boys - I think anybody in fixed income is going to really enjoy the higher rates going forward. We haven't even seen the inflows begin yet.
This is good stuff.
Interested in your take on some others.
- Morgan Stanley Investment Management (Post-EV acquisition)
- Parnassus (Ownership & leadership change/ESG integrated type manager)
- Primecap (Team approach, Vanguard advisor)
- Putnam (Fixed income only?)
- Schroders (Vanguard sub-advisor)
Edited to remove Capital Group
Probably not looking great for ESG right now.
What's your take on Insurance companies? I work in a large insurance company in London in the annuities team. We back the defined benefit liabilities with private and public credit. We are buy and maintain LO investors.
PIMCO and other fixed income players are seeing a lot of opportunities and will continue to do so into the foreseeable future. Bonds are very cheap right now and their active management approach should help them stay afloat and take advantage of the high rate environment. They also have a burgeoning alts division that is rapidly expanding into private credit, distressed credit, and cash-flow heavy private equity.
Are you saying that next 10 years will require good stock pickers? You're kinda just saying that whoever leans value will do well.
that wasn't the point i was trying to make. I am pretty factor agnostic, but I pointed out d&c and david samra because their relative performance (relative to the factor) is very strong
How well positioned is Alliancebernstein?
Harris Associates, especially in possible value rebound.
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