Asset Managers are from Mars, Asset Owners are from Venus

So, for the record, let’s say it loud and clear: Investment management is a for-profit enterprise. As such, asset managers and asset owners have a relationship beset with natural conflicts.

Asset owners want fees below 10 bps; asset managers prefer “2% + 20%.”1 Asset owners want transparency; asset managers favor black-box opacity. Asset owners want simplicity; asset managers hire rocket scientists to create complex optimized solutions for sex appeal.2 Asset owners want “future” outperformance after they fund a manager; asset managers would be satisfied with strong past outperformance to facilitate future asset gathering. Asset owners want a bigger alpha; asset managers would happily sell them the possibility of alpha and charge handsomely for the service of selling hope.

A brilliant passage from Jason Hsu’s December commentary for research Affiliates, check out the rest at the link above.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. Best Trading And Investing Articles - December commented on Dec 26

    […] Reformed Broker all day long, but here are my two picks for December: Asset Managers are from Mars, Asset Owners are from Venus. But don’t miss the link to the rest of the article – it is a great read! And in the second […]

  2. video transitions effects video star commented on Sep 15

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2014/12/19/asset-managers-are-from-mars-asset-owners-are-from-venus/ […]

  3. Bitcoin Trading Software commented on Sep 23

    … [Trackback]

    […] There you will find 45994 additional Info to that Topic: thereformedbroker.com/2014/12/19/asset-managers-are-from-mars-asset-owners-are-from-venus/ […]

  4. Blazing Speed Trader commented on Sep 23

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2014/12/19/asset-managers-are-from-mars-asset-owners-are-from-venus/ […]

  5. what is functional testing commented on Nov 26

    … [Trackback]

    […] Read More on to that Topic: thereformedbroker.com/2014/12/19/asset-managers-are-from-mars-asset-owners-are-from-venus/ […]

  6. rbc royal bank commented on Dec 20

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2014/12/19/asset-managers-are-from-mars-asset-owners-are-from-venus/ […]

  7. mơ thấy chiến tranh commented on Jan 06

    … [Trackback]

    […] There you will find 2165 more Information on that Topic: thereformedbroker.com/2014/12/19/asset-managers-are-from-mars-asset-owners-are-from-venus/ […]

  8. Zanussi FLS 1074C manuals commented on Jan 20

    … [Trackback]

    […] Here you will find 79700 more Info to that Topic: thereformedbroker.com/2014/12/19/asset-managers-are-from-mars-asset-owners-are-from-venus/ […]

  9. testing automation tools commented on Feb 07

    … [Trackback]

    […] Here you can find 42103 additional Info on that Topic: thereformedbroker.com/2014/12/19/asset-managers-are-from-mars-asset-owners-are-from-venus/ […]