Value In Beat Up Alternative Asset Managers?
RBC Capital Markets analysts Kenneth Lee and Mark Dwelle look at the beat up world of asset management and like some of what they see. The list of problems facing traditional asset management firms is deep and well-known. In a world where the Department of Labor reached above the US Securities and Exchange Commission to develop a fiduciary rule for recommending investments that limit a firm’s profitability, computer-based “robo-advisers” threaten to make human asset advisers obsolete at a time when Eugene Fama categorized portfolio management as a part-time job. Yet in such a hostile environment, hidden value inside the asset...