In this episode of Rosemont Roundtable, Rosemont’s Chris Banholzer discusses the fragile state of long only, active boutique managers with colleagues Chas Burkhart and Brad Mook. The conversation digs into the struggles and failures of employee-owned boutiques, highlighting a surprisingly high number of significant AUM declines and firm closures in recent years.
The trio discusses reasons for this trend—such as sustained poor investment performance, excessive product and client concentration, insufficient communication and poor leadership—as well as thoughts on improving firm resilience and sustainability. The discussion also touches on ownership transitions, the decline of internal markets for equity, and the challenges in maintaining firm cohesion during downturns. Tune in for a thoughtful discussion of this highly relevant and timely topic.
Transcript available for download here.
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