What is an "INVESTMENT BOUTIQUE"???

Answer 1

A small asset management shop, less than about 15-20 billion under management, though there is no hard and fast rule on that. They generally manage separately managed accounts for high net worth and small institutional clients. They also are sometimes on retail wrap programs where they manage separately managed accounts that are distributed through some plan sponsor. Occassionally they will have a mutual fund.

They generally are focused in the way they manage money. Strictly large cap growth or strictly small cap value, though as they grow they will occassionally branch out into other disciplines. They do not offer the broad options available at a larger asset management institution.

The pros for these guys is that as a small shop they are nimble and not hampered by bureaucracy, so they can adapt quickly to changing markets. The cons are that they have fewer resources, so they generally have smaller research staffs.