Bigger Isn't Always Better

Bigger Isn't Always Better

The tortoise is catching up to the hare. According to a new report by Strategic Insight, small fry money managers are making significant in-roads into the fund marketplace, with 20 of the 25 fastest-growing fund firms having less than $5 billion in assets under management a year ago.

The tortoise is catching up to the hare. According to a new report by Strategic Insight, small fry money managers are making significant in-roads into the fund marketplace, with 20 of the 25 fastest-growing fund firms having less than $5 billion in assets under management a year ago. Ranking firms by net flow growth rate, or net flows divided by beginning-period assets, Strategic Insight came up with the top 25 fastest-growing managers of stock and bond funds for the 12-month period ending March 2011. Most of the firms on the list started out with less than $5 billion in assets in March 2010.

“The road to success among these firms highlights the unique capabilities of such fund managers and the continued demand for this type of skill among advisors and investors,” said Dennis Bowden, senior research analyst at Strategic Insight. “So the fact that smaller fund managers dominate the list of fastest-growing firms is not surprising.”

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