In the first of a unique video series internationally based members of the Group of Boutique Asset Managers (“GBAM”) have revealed insights into factors that have led to the ‘Boutique Premium’ – the outperformance of smaller versus larger funds.
The factors were outlined for GBAM in a study and paper by Professor Andrew Clare, Professor of Asset Management at Bayes Business School (formerly Cass Business School). His work focused on the European asset management industry in 2020 (https://www.gbammanagers.com/boutique-premium-paper) which, confirmed the findings of earlier research into US boutiques in 2015 by AMG.
In the videos, asset management executives from Aubrey Capital Management, First Avenue Investment Management, Azvalor, Chartwell Capital, MAPFRE, Farview Invest and SKAGEN Funds discuss the factors behind the ‘boutique premium’, including ownership structures, entrepreneurialism, company size, investment specialism and boutique culture.
Present in the video are: Andrew Ward, CEO, Aubrey Capital Management (Edinburgh) ; Hlelo (Lo) Giyose, CIO and Principal at First Avenue Investment Management (Johannesburg); Beltran Parages, Founding Partner and Heat of Investor Relations, Azvalor (Madrid); Ronald Chan, Founder/CIO, Chartwell Capital (Hong Kong); Jose Luis Jimenez Guajado-Fajardo, Group Co-CFO, MAPFRE (Madrid); Ramon Eyck, Founder Member of the International Advisory Board for Fund & Manager Selection (UK); Marcel Borelli, Co-Founder and CIO, Farview Invest (London); Tim Warrington, Chairman, SKAGEN Funds & Chairman, GBAM (Stavanger, Norway)– alongside Professor Andrew Clare (London).
Professor Andrew Clare says:
“If you are a small fund manager then really, you live or die by your performance. So, if you have been in existence for some time, it is likely you are doing something right and you have good performance. So, I think it is more likely that you will find alpha in these sorts of places than in the general asset management industry.”
GBAM Chairman Tim Warrington says:
“Being able to verify the Boutique Premium through independent data and academic research was very important and necessary, both for clients and those in the fund selection community.”
To view the video, click here: Multimedia Resources | GBAM Managers
Subsequent videos in the series will delve deeper into the factors identified, with further comment from both sell side and buy side financial professionals.
