The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Should Fundsters Get Into the Buyout Biz? Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, February 22, 2013

Should Fundsters Get Into the Buyout Biz?

News summary by MFWire's editors

The recent brouhaha involving T. Rowe Price [profile] and the buyout of Dell is a sign of how far outside their comfort zones mutual fund PMs are willing to go.

Once considered the turf of investment banks, private equity firms and other masters of the universe, buyouts could become a critical battleground for mutual fund managers, according to Fortune.

There are a number of reasons behind this move, according to the magazine. First, investors have become more mobile with their assets. For example, in the case of T. Rowe, the mutual fund shop saw $4.2 billion in net outflows during the fourth quarter last year, despite the fact that assets under management rose 18 percent.

Moreover, firms are being squeezed in terms of fees and demand for performance.

Fortune writer Lauren Silva Laughlin describes it this way:
Being squeezed from all sides, what is a mutual fund manager to do? It is bound to pick some losers sometimes. But with competition so stiff, it can't afford to. Mutual fund managers need to offer investors something more than just decent returns on stocks. Perhaps it should give the average retiree a shot at the buyout business too.

Laughlin writes that there are several ways T. Rowe could break into buyouts. It could try to nudge its way into existing deals, like Dell, by putting up a fight when a deal is announced.  

Edited by: Tommy Fernandez

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use