There are three major trends that are all gravitating around the asset management industry, a McKinsey & Company report notes. Ultimately active managers, particularly at smaller firms, could be headed for increasing difficulty. In the wake of the 2008 financial crisis, a “new abnormal” has occurred – and McKinsey didn’t even touch market volatility when considering the abnormality. [timeless] Even as passive management grows, its share of revenue remains consistent While the passive asset management industry had grown from 12% to 18%, something odd has occurred: their share of industry revenue has remained consistent at 3%. While passive management…
Big Fund Managers Could Get Bigger Amid Continued Changes
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.