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The Role of Third-Party Asset Managers

A “Jack of All Trades” can sometimes also be referred to as ‘a mile a wide and an inch deep’. While certainly not always the case, it can be particularly relevant in the highly diverse world of investment management.  The enormous amount of information available to just about everyone has raised the information bar, making it more difficult to find an edge that enables one firm to outperform others.

From monitors parked outside of manufacturing facilities counting trucks coming and going to computers running powerful weather forecasting algorithms, quality information comes at a significant premium, making it hard for anyone who does not have the time or the resources to compete. 

On top of that, the world is now open for investment and executing strategies in many different ways. Micro and small cap companies are easily traded, while international and global/macro strategies provide investors with a high diversification quotient.  Firms can hedge exposures including market neutral, pairs trades, options contracts, and outright shorting. Suddenly a Jack of All Trades can find themselves in deep water. 

Fortunately, it has never been easier to access some of the world’s best asset managers in a few mouse clicks.  Modern financial tools provide the ability to combine an advisor’s internal investment portfolios, alternative strategies, domestic exposures, and international allocations into a variety of sleeves in one single brokerage account.  Diversification is at your fingertips assembled using portfolio construction, analysis, and proposal tools that can be sent to clients in minutes. 

A key part to all this is advisors can allocate their client’s assets to some of the world’s best known and well-respected asset management firms that specialize in each of these areas of investing. 

An advisor no longer must combine the tasks of managing their client’s financial futures with choosing with microcap has the best upside. So, why not allocate to third party managers so they can do their jobs, and you can get on with doing yours better and more efficiently than ever before.

To learn more about how you can do all this and more to save time, money, and better serve your clients, contact SMArtX Advisory Solutions at