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Matthias Knab, Opalesque for New Managers:

The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique managers - defined as firms with $200 million to $1 billion in assets under management - have shown remarkable staying power. A new paper published in The Journal of Portfolio Management examines exactly why.

In Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry, Francois-Serge Lhabitant - CEO/CIO of Kedge Capital in Jersey and adjunct professor of finance at the Hong Kong University of Science and Technology - analyzes how governance architecture, organizational scale, and strategy capacity interact to shape competitive outcomes across the industry.

Lhabitant acknowledges the real structural advantages that large multi-strategy platforms enjoy: regulatory infrastructure, broad distribution networks, and technological scale. These factors have made it easier for institutional allocators to concentrate capital with a smaller number of well-resourced counterparties.

But the paper argues that boutiques possess their own distinctive gov......................

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