Fastest Growing Long-Term Fund Managers:
Manager | Net Flows as % of 1/1/2011 Assets
DoubleLine Capital | 260%
Stone Harbor | 112%
Yacktman | 82%
AQR | 75%
Cambiar | 75%
TFS Capital | 58%
ALPS Advisors | 55%
Pacific Heights | 51%
JPMorgan Chase (ETN) | 47%
Rafferty (Direxion) | 46%
The fastest-growing managers of 2011 included a variety of specialized/
“Investment boutiques, international and global investing specialists, and providers of non-traditional and opportunistic strategies are all common to this list,” commented Avi Nachmany, Strategic Insight’s Director of Research. “Indeed, the broadening appeal of non-traditional strategies in 2011 helps explain why there were so many more fund managers with organic growth of 10% or more in 2011 versus 2010. As 2012 begins with persistent economic challenges, we expect that unconventional approaches and strong investment convictions will again find audiences this year.”
Of the $79 billion in net flows garnered through the first 11 months of 2011 by this group of 25 fastest growers, a higher proportion of flows went to equity funds than seen in the general mutual fund/ETF universe (where equity funds were in net outflows in full-year 2011). This is not unusual, however, because smaller firms often can more easily distinguish themselves and establish reputations with equities or alternative strategies.
“And while many of the fastest-growing managers naturally started 2011 fairly small, a number of rapidly growing managers last year were over $20 billion in size, including MainStay and Virtus, as well as fixed-income specialist TCW, and rising ETF powerhouse Van Eck,” said Loren Fox, a senior research analyst at SI.
“The rapid and unique growth of smaller fund managers is often overlooked amid the attention to large fund management firms that have helped drive the mutual fund industry to significant growth post-crisis,”
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