The investment industry is undergoing rapid and increasing change, characterized by active consolidation among managers, with banks and insurance companies divesting ownership stakes, and private equity quickly becoming the go-to asset class. These trends have encouraged portfolio managers to break away and go independent.
David Littleton and Alex Morris, co-founders of F/m Acceleration believe in the advantages provided to independent boutique managers and focus on providing the capital and services to help them succeed. They are experts on the boutique active asset management space, spotting manager talent, and helping successful investment managers create sustainable businesses.
F/m Acceleration was founded to help portfolio managers go independent and scale up by handling the non-investment functions such as compliance and distribution. In addition to discussing the Boutique advantage, they discuss what it is like to set up your own shop, the considerations for going independent, the skills and traits necessary for success within an independent shop, and what do you need to be thinking about to make your own boutique money management business successful.
The Take 15 Series is a collection of illuminating, short conversations with noted economists, best-selling authors, leading researchers, and successful practitioners on topics ranging from geopolitics and whistleblowing to irrationality and outlooks.
Episode Transcript (PDF)
Episode Breakdown:
1:35 The skill sets that people need to have to be successful in going independent and what they should consider before doing so.
4:09 The natural steps that someone would need to go through to start a new boutique firm
8:20 The characteristics that they are looking for to make an investment and to support a new team and firm
11:44 How difficult is the due diligence process?
13:47 Characteristics that make boutiques better or available to create better investment outcomes?
16:41 Crucial ideas and thoughts you would like people to take away
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