An analysis by Affiliated Managers Group released this week found active equity boutique investment managers outperformed non-boutiques by an annual average of 51 basis points over the past 20 years.
The analysis noted the average boutique outperformed the average non-boutique in nine of 11 equity style categories. Emerging markets managers topped the list, with an average outperformance of 127 basis points over non-boutiques. Global equity managers had the second-highest outperformance (113 basis points), followed by U.S. small-cap value managers at 101 basis points.
Midcap strategies were the exception. In two of three midcap strategies studied, non-boutiques had higher average outperformance vs. their counterparts -- core (85 basis points) and growth (four basis points).
The analysis was based on rolling one-year gross returns for institutional equity strategies during trailing 20-year period ending Dec. 31, 2014.
Managers were classified as “boutiques” if they fit each of the following criteria: significant principal ownership; investment management is sole business; managed less than $100 billion; and are not exclusively smart beta or funds of funds.
AMG is a global asset management company with equity investments in leading boutique investment management firms.