Price of research set to rise for asset managers

In a volatile equity market, asset managers may now pay the price for having concentrated research spend on analysts from a few bulge-bracket firms.

In April, Substantive Research, an equity research discovery and pricing analytics platform for asset managers, published the results of its latest survey of 40 long-only managers and hedge funds. Based in Europe and the US, these firms have assets under management ranging from $2 billion to $800 billion.

The survey finds that asset managers continue to cut spending on research and to allocate a higher percentage of their shrunken budgets to an oligopoly of bulge-bracket investment banks.

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