When a roomful of mutual fund company executives at a recent industry conference was asked for a show of hands of those who had looked into running managed accounts as a means of growth for their respective companies, no one moved.

"My suspicion is that everyone has, just nobody wants to admit it," said Jerrold Grochow, chief technology officer at FOLIOfn of Merrifield, Va., at the National Investment Company Service Association's East Coast regional meeting in New York earlier this month. Another speaker, Drew Lapsley, a vice president at Goldman Sachs of New York, had asked for the show of hands.

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