Boston as an Asset Management Hub

Being a sucker for regional economics history and how certain niches develop over time, especially in finance (venture capital in SF/Silicon Valley, IB in NYC, derivatives in Chicago, insurance and metals in London, reinsurance in Bermuda, etc.), I'm curious if anyone here knows why Boston has been a hub for asset management for so long, relative to other cities (other than NYC which is a hub for basically everything now), though this probably has decreased overtime since everyone has a highspeed internet connection but still. Would really appreciate if anyone happens to know the history of that.

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Comments (5)

Nov 22, 2021 - 5:35pm

thought it might have been CoL and proximity to NY but I just looked and its not as close as I thought it was

Nov 22, 2021 - 5:45pm

It's critical mass from early movers that became titans in AM. Early companies like Fidelity, State Street, Columbia Threadneedle, Loomis Sayles, Putnam, Wellington, and Eaton Vance paved the way for names like Cambridge Associates and Geode. It's been an asset management titan since the industry matured in the early 20th century, and the reputations of major figures like Peter Lynch have kept it going.

Nov 22, 2021 - 5:47pm

This is sort of what I was thinking, thanks for responding. I was randomly reading about Pembroke Real Estate, which is owned by the Johnson family which owns Fidelity and then started thinking about it.

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Nov 22, 2021 - 5:50pm

At the end of the day, all of these things can get really tilted with just a few people. Think Fairchild Semiconductor. The right people were around when Investment Companies became a thing in the US, and Boston took advantage.

Nov 22, 2021 - 8:53pm

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