Strategy, management and execution are crucial factors in GCC asset management | The National

Strategy, management and execution are crucial factors in GCC asset management | The National:



"The asset management industry in the GCC has blindly followed developed market dictates. The main focus is listed equities. But the GCC markets have neither the depth nor breadth to allow an active strategy to flourish. And a passive strategy does not need asset managers.



The only other truly active asset class in the region is private equity (PE). PE managers have focused predominantly on what they call late stage investing: buying shares of companies shortly before they list. This strategy has performed well on a few notable deals. However, fund performance has been abysmal.



The problem here is where is the value creation? A firm that buys a company and quickly IPOs it is not an asset management firm but an investment bank that is providing underwriting and equity capital market services."



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