A door which regulators helped open two years ago for mutual fund portfolio managers now is closing due to changes in employer demand.

Mutual fund companies' appetite for star portfolio managers has waned to the point where recruiting so-called "name" managers is the rare exception rather than the rule, according to a report issued last week by Russell Reynolds Associates, an executive recruiting firm. Russell Reynolds, the fourth largest executive recruiting firm, reported that it sought prominent managers in only one or two searches out of more than 200 the firm conducted this year for portfolio managers and senior level mutual fund company executives. That is a change from recent years when fund companies largely wanted high-profile managers who could serve as the subject of advertising and asset gathering campaigns, executives at Russell Reynolds said.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.