single frog in a pond facing multiple frogs Another perception is that large asset managers rely on less innovative solutions that hold them back. (Photo: Shutterstock)

Large asset managers just aren’t up to the task of providing investors with alpha. Instead the small and nimble are better positioned to deliver.

That’s according to new research from CoreData, which finds that 90 percent of institutional investors globally believe that smaller boutique firms are better able to deliver returns than the big guns, which, they think, are held back by bureaucracy (65 percent) and a more risk-averse stock selection process (42 percent).

In addition, 39 percent say that big firms’ centralized power structures build time inefficiencies into the process, while 24 percent say large asset managers rely on less innovative solutions that hold them back in their ability to deliver returns.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.