Case Studies

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    Global/International Equity Manager
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    Institutional Equity Asset Management
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  Proprietary Papers



Institutional Equity Asset Management

Developed Plan To Grow Small-Cap Equity Assets, Resulting In Nearly 90% Increase

Project goal:
To develop a plan to increase a boutique equity manager's small cap assets under management.

Business context:
A boutique firm, with three founding partners, had built a positive reputation in the mid-cap equity space; however, its small-cap product was actually the stronger performer and more saleable. The challenge: small cap had fewer assets and resources. The firm wanted to increase AUM, while also creating more diversification in revenues, and balance among staffing and decision-making policies.

Margolis Advisory Group evaluated the small-cap product using qualitative and quantitative approaches to determine its value-added proposition and uniqueness in the marketplace, and then developed a plan to create brand awareness and increase assets by targeting appropriate prospects. We analyzed sales materials, resources and client service capabilities, and helped manage the firm's dynamics associated with the reality that the small-cap product had surpassed the flagship product in assets.

Targeted particular plan sponsors and consultants, with focused outreach including updated marketing materials and website. Aligned the resources, titles/positions and incentives for the three principals to help build the firm's reputation around its investment philosophy rather than one particular product, which will help promote and sustain growth over time.

Small cap assets increased nearly 90% and are currently 33% greater than the assets of the original flagship product. Because of the growth in small-cap assets the firm has been able to weather the storm of its flagship product, benefitting from business diversification, maintaining client satisfaction and retaining key personnel.

Lessons learned:
A firm's ability to grow assets involves multi-dimensional components. Beyond understanding and marketing the strategy, the firm must be appropriately resourced, staffed and incentivized, and effectively communicate throughout the firm. This approach is as important (if not more so) for smaller firms than large.