Monk: Investment consultant margins discourage deep diligence on new managers
Ashby Monk · Ashby Monk – Innovation in Institutional Portfolios (Capital Allocators, EP.196) · May 24, 2021 · at 23:33
Dr. Ashby Monk discusses how third-party investment consultants structurally reinforce status-quo bias among institutional allocators.
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“The consulting businesses are based on scale. So if they go and do a diligence on a manager, A deep dive and really understand that manager. They want to use those reports many times because that's how they make the business work. That's how you get the margin doing like a deep dive on a new manager just doesn't make sense in terms of like the economics of running a consulting business.”
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