Potential Advantages of Boutique Investment Firms Managing Mutual Fund Portfolios

“The best boutique firms reflect their managers’ passion for investing through a disciplined process grounded in quality research.”

The term “investment boutique” can describe a relatively wide range of asset management firms, but the general consensus is that investment boutiques are smaller, independently-operated firms that manage less than $10 billion in assets under management (AUM) with specialization or expertise in a particular segment or area of investing.

We believe the boutique model offers an attractive alternative to large firms and should be a factor investors examine when making investment decisions.

Characteristics of boutique firms include:

  • A unique story
  • Simple org structure
  • Streamlined management
  • Asset managers not gatherers
  • Low staff turnover
  • Employee ownership
  • Vested interests
  • Accessible portfolio managers

“The Buffalo Funds team-based, idea-sharing management style ensures collaborative decision-making and continuity within our investment process. Our portfolio managers and analysts work as a team to achieve consistent, long-term investment returns.”

The sharp focus on a particular slice of the financial markets, coupled with disciplined, time-tested investment strategies managed by stable, long-tenured investment teams, working in close collaboration together, may help advisors provide their clients with compelling results over time.

Opinions expressed are those of the author or Funds and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Fundamental Approach

We get to know the companies we invest in and learn how they run their business.

Top-Down & Bottom-Up

We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.

Proprietary Philosophy

We construct our portfolios based on our own proprietary investment strategy.

Disciplined Investing

Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.