There's a new breed of money manager creating a buzz on the institutional circuit. The firms are young; they're small; and, in most cases, they offer just one or two investment specialties.
Firms on Pensions & Investments' list of up-and-comers in the asset management business were either culled from the PIPER database based on their age and three-year alpha, or recommended by investment consultants familiar with their work.
In cases where the firms have multiple strategies, the strength of one strategy could get them into the list, although five of the firms cited here made the list for two different strategies with high alphas.
Most of the principals were inspired to start their own businesses when their previous employers were acquired by another firm. Others wanted a stake in their firms and a chance to share in the profits. While all of the firms cited are independently owned and operated, several are backed by their former owners or financiers. The managers profiled here are ranked in descending order by their alphas.
