There are only so many cuts an asset management firm can make before the very essence of its being, performance, is threatened, MarketWatch reports.
So far, most of the job cuts at asset management firms have been in operations. However, said Stephen Savage, editor of the No-Load Fund Analyst newsletter, if the fund is changing because of what is happening with the parent companyif assets are way down or the manager is leaving or the analysts are being laid offyouve got something to think about and keep an eye on. None of these issues start out as you-must-sell problems, but you can certainly see cases where the fund company has problems that wind up becoming problems for the funds.
Certainly, the most significant cuts a fund company can make are to their portfolio managers and analysts, noted Geoffrey Bobroff, president of Bobroff Consulting.
