Why do emerging managers offer a performance advantage?
• Emerging investment managers generally focus on a single discipline, which significantly increases the prospect for producing outstanding performance.¹ • Firm management structure is flat and decisive. • Emerging investment managers invest in best ideas, given smaller asset base. • Emerging investment managers have an execution advantage due to flexibility of smaller asset base and are able to buy and/or sell positions more rapidly and covertly than the larger firms. • The interests of emerging investment managers are aligned with those of clients, as owners have significant financial stakes in their investment disciplines, firms, or both. Emerging investment managers are, therefore, motivated to excel because of their substantial financial ties to their firms. ¹ Leading Edge Investment Advisors’ research confirms that more than 70% of all emerging investment managers, with assets of less than $500 million, manage single investment strategies. [Back to Top] Does LEIA function as a th
• Emerging investment managers generally focus on a single discipline, which significantly increases the prospect for producing outstanding performance. • Firm management structure is flat and decisive. • Emerging investment managers invest in best ideas, given smaller asset base. • Emerging investment managers have an execution advantage due to flexibility of smaller asset base and are able to buy and/or sell positions more rapidly and covertly than the larger firms. • The interests of emerging investment managers are aligned with those of clients, as owners have significant financial stakes in their investment disciplines, firms, or both. Emerging investment managers are, therefore, motivated to excel because of their substantial financial ties to their firms. Leading Edge Investment Advisors research confirms that more than 70% of all emerging investment managers, with assets of less than $500 million, manage single investment strategies. [Back to Top] Does LEIA function as a third