What is the "McK/B/BCG" of asset management?? (e.g. - the unanimously agreed upon top firms)

Rank: Baboon | 150

If one wants to have a successful management consulting career (or eventually wants to become a ceo), chosing a firm is simple...go for the top three...McKinsey, bain, or Boston Consulting group. If one wants to have a successful accounting career, again, chosing a firm is simple...go for the big four...(I've never bothered to look them up).

BUT...

If one wants to have a successful Asset Management career, chosing a firm is not so simple....

So, my question is this - What are the unanimously agreed upon top firms in the field of asset management (e.g. what mck/b/BCG is to management consulting)?? If I had the qualifications to work for anyone in asset management - and wanted to be very successful eventually - what would be the best fims to work for?

Thank you very much in advance for any help!

Best,

Blue

Comments (25)

 
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Jun 30,2010

PIMCO. Fidelity is also well-regarded.

 
Jun 30,2010

PIMCO, blackrock, wellington, fidelity

also, asset management divisions of goldman sachs and JP Morgan are top notch.

 
Jun 30,2010

blackrock
gsam
jpm am
pimco
fidelity
State Street Global Advisors

"What we can, we must; and because we can, we must"

 
Jun 30,2010

I would add Capital Group to this list.

 
Dec 31,2010
jankynoname:

I would add Capital Group to this list.

i second that. they tend to be publicity shy but it's well regarded in the industry.

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Jun 30,2010

I realize it's like comparing apples and oranges, but how do these places compare in prestige (within the financial community, and with B-school adcoms) against the BBs? Never see these places get mentioned on this forum; is it because not many people are interested in these firms or because they take only more senior professionals?

 
Jun 30,2010

B-school adcoms at all the top schools will be very familiar with these firms. My guess is they're regarded just as highly as BB banks, but slightly lower than the top tier PE or consulting shops.

Within finance, it's probably a buy-side / sell-side rivalry, right? All the guys at the top buy-side shops probably turn up their noses at the bankers, and visa versa... but then again I have no clue (just a consultant).

 
Jun 30,2010

It depends on the security / style
equity vs fi
then subdivision eg: equity -> value, growth, int'l etc...

This has been convered briefly before.

 
Jun 30,2010

how do you pick the best? avg returns? comp?

just know the buyside pays less than sellside, especially mutual funds

 
Jul 31,2010

Beg to differ with JP/GS - in general I think the asset management divisions inside the banks are not as well regarded by the institutional investment community. The larger top firms are Blackrock, PIMCO, GMO, Wellington

 
Jul 31,2010

JPM - equity & fixed income
GSAM
Blackrock
PIMCO - dominates the fixed income universe
Dreyfus
Columbia

JPM, GS, WF, and BAC (they own part of Blackrock) are really the only BB ibanks that have top notch AM arms. The other banks like DB, CS, MS don't have clout.

 
Jul 31,2010
kingtut:

JPM - equity & fixed income
GSAM
Blackrock
PIMCO - dominates the fixed income universe
Dreyfus
Columbia

JPM, GS, WF, and BAC (they own part of Blackrock) are really the only BB ibanks that have top notch AM arms. The other banks like DB, CS, MS don't have clout.

WF is a bit player and does not have a AM division that is viewed as top notch. Blackrock is NOT BAC's asset management group. They own about 1/3 of BLK and by no means does either party view themselves as part of the other. On the other side of the equation, DB has a very large fixed income AM group and is a significant player with certain institutional investors. They have plenty of clout in the market.

 
Jul 31,2010

BlackRock churns out a lot of index funds--they have a huge business but a lot of it is not actively managed at all. JPMAM and GSAM are probably the strongest of the BBs, and PIMCO is damn good at what they do.

 
Jul 31,2010

PIMCO is probably the toughest AM firm to get a job at.

 
Jul 31,2010

PIMCO is definitely most legit

 
Jul 31,2010

BlackRock is absolutely NOT baml's AM group.. they actually COMPETE with each other in some spaces.

If we're talking about AM in terms of funds business..

BlackRock
PIMCO
Wellington
Vanguard
Fidelity

JPM and GSAM lack severely in their funds business and are known more from private banking..

 
Aug 31,2016

Here is the answer to the original question:

Equities:
Tier I: Capital Group, Dodge & Cox
Tier 2: Fidelity, Wellington, T. Rowe
There's lots of other smaller respectable firms, but the OP asked for the 'big 3/big 4'.

Fixed Income:
Tier I: PIMCO

As you can see, I've excluded the the firms that provide passively managed fund products (index, ETF's, etc.). Yes, they are big, profitable business, but their employees do not necessarily hold prestigue within the world of active investors.

Prestigue is determined by where the top talent wants to be. The top talent follows the dollars. And the dollars are determined by AUM / number of investment professionals, simplistically speaking.

 
Best Response
Dec 31,2010

AM Is far too broad a career path. It can mean simply allocating portfolios to asset classes, doing fundamental analysis on stocks, quant trading and anything in between. Do you mean HFs? PWM? Stock picking? Manager research? You can't compare.

There is one massive difference between banking and AM: small is generally better in AM. Shops like T. Rowe Price and Fidelity are so big that there is very little active management going on there - they basically own everything. They may SAY they are active managers but no one can truly manage a trillion dollars actively - those guys are essentially enhanced indexers.

I'm not big on the AM side of banks. I may be biased because they hire smaller boutiques and HFs to manage $$$ for them.

The best place to be is a HF or a boutique asset manager that can basically do whatever it wants with its AUM. I would rather work for Einhorn at Greenlight or Greenblatt at Gotham any day of the week than some big factory that has commercial during college football games.

 
Dec 31,2010

"BlackRock is absolutely NOT baml's AM group.."

BlackRock was owned by MY at one time. They actually have a pretty convoluted ownership history

 
Feb 29,2016

What are your thoughts about BNY Mellon? Finding it hard to assess it's reputation, as I'm beeing new to this industry. Thanks.

 
Feb 29,2016