We believe emerging asset managers possess characteristics and attributes that are highly correlated to investment success. A healthy and comprehensive asset manager landscape requires more participants to provide investors with more credible investment options to choose from.
We believe that there is higher portfolio manager commitment in emerging businesses and stronger alignment of interest with clients. We also believe that emerging asset managers will be the home of future investment talent and therefore play an important role towards creating a healthy and competitive industry.
We believe decision making can often be quicker at smaller firms where there may be less bureaucracy. Due to size, emerging asset managers have a greater opportunity set and can invest in their best ideas. They also possess an execution advantage in that they can trade in and out of shares quicker and have less market impact.
Through skilled selection, the emerging manager value proposition may be realised for investors and lead to outperformance relative to more established investment managers.