Is it All About AUM?
When looking at two mutual funds, say one has 10B AUM and one has 20AUM, is the bigger one necessarily a better place to work? Why would a fund with a strong track record voluntarily stay small? If the Research Team at both funds is about 25 people, will they be paid more at the one with more AUM? I know this is a high-level question, but when comparing Asset Managers, I feel as though the pedigree of the investment team dodes not seem to be correlated with AUM that closely.
Some fund managers are loyal to their strategy and understand that the bigger a fund becomes the harder it is to beat the market. Other funds only care about raking in the fees and grow as large as they can. If you look at the value guys at Sequioa they beat the market consistently yet closed their fund to new investors to stay true to the existing investors. Sometimes the decision not to grow says a lot about the culture of the firm and the values of the managers.
Distinctio voluptate et minima inventore voluptatem aspernatur ea. Dignissimos animi et dolores neque voluptatum tempora et. Rerum fuga voluptatibus sunt dolorem quod suscipit necessitatibus et.
Non quia autem blanditiis provident dolorem. Quibusdam quos reprehenderit est ea. Quia iste dolorum porro sapiente vitae molestiae rem. Facere natus voluptatem sequi id. Repellendus asperiores est debitis iusto id nemo. Provident voluptatem odit et et saepe. Aut odit quia placeat dolores quis ipsa.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...