Posted by: donmihaihai | April 26, 2015

ARA Asset Management 26 April 2015

Fund Management is a good business. Read about small fund manager trying to stay in the business but hardly read a lousy huge fund house doing badly operational wise even if performance of their managed funds are not doing as well.

ARA is a fund management house and has been doing very well in term of numbers. ARA cares how other look at them as well. Always dressed up, give good stories. I can see it, and always take note of it. Always wonder what ARA will do if they are unable to make the number.

No it is still doing very well(not as good of course) and guess I was wrong about watching expenses as it grew faster than revenues. This is a people business, people company. Need to invest to grow and noticed that they are getting more and more names in the AR. Planting seeds. Good move I guess.

It doesn’t matter whether ARA has a full range of products or platforms to grow. What matter in fund management is size and performance. With a growing overhead, AUM must grow but not by launching small fund. 80 million fund must be a joke. Investing own equities without getting sizeable fund is not fun as well. These are not the reasons why fund house is a good business.

Key to watch – fund size(private).

Next key to watch – fund performance.

Already happening – people.

Lastly, watch how ARA dress up FY2015 results.

Side note: Hate the word platform. Same goes to recurring, moat, value investing, etc. As if you are doing value investing just because you are using value investing. Calling companies with moat mean it has great moat. With platform mean the company is unstoppable and growing. I think kids can do better.

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