Why big may not always be beautiful in fund management

'Large firms just can't stay one size...'

clock • 4 min read

When a firm transitions from ‘boutique' to ‘large' the dynamics change materially, and the pressure on executives to continue driving through growth only increases, writes James Sullivan

When the monster stops growing, it dies. It can't stay one size John Steinbeck, The Grapes of Wrath Steinbeck was referring to ‘the banks' that fed on the labour, payments and taxes of tenants and landowners. That quote has always resonated we me, working in asset management. One common critique I have faced throughout my career, given I have typically worked for boutiques, is "it must be difficult being small". Earlier on in my career, my response would have been along the lines of "yes, it is" but as I've become more battled hardened, my response has moved towards "it's n...

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