No Meeting, No Money?
Has the manager research process been turned on its head? I’ve been talking to manager research analysts across Europe and the US about the future of allocating capital to managers. This week, conversations have been with (for lack of a better term) ‘old school’ analysts overseeing large pools of money who have been involved in research for 15+ years. They are used to meeting with managers in person at some point before making an allocation… now what do they think?
Though my sample size may be too small and our time period for analysis may be too short, it is very clear that we are in a serious adjustment period. There is clear willingness to use video for ongoing updates with managers but, across the board, there is hesitancy in allocating money to new managers without that initial in- person meeting – shaking hands, seeing the whites of their eyes and all that human stuff. To be clear, not that they won’t do it but they haven’t yet and not sure what will compel them to do so.
One very sharp and experienced analyst pointed to the broader topic of ‘culture’ and what is gained in spending half a day in a manager’s offices. It’s not just about the portfolio manager…
It is still too soon to tell, but the future of engagement between asset managers and analysts is being determined now. Analysts will need to decide what they need to get comfortable to invest in new managers and managers need to figure out how to comply with clients’ needs in an environment that, regardless of what happens, certainly isn’t going back to 2019.
Roland J. Meerdter
Co-Founder
- Operations
