A Business Times survey from a few years back concludes that specialists will replace generalists.
One of the major trends expected in the international investment scene over the next few years is a move to greater specialisation. As a generalist it is difficult to differentiate oneself from the competitors as everybody knows what everybody else is doing.
The business model of the Eighties, which was “to be all things to all people” by having one large investment team covering the world, will give way to a new model of teams focusing on their core competencies, and outsourcing areas that can be better provided elsewhere.
It’s true – specialists are replacing generalists – we’ve seen it happening. Brokerages, as in this case, are a good example of an industry determined to focus on very specific market niches. On the one hand it makes great business sense by efficiently utilizing resources but on the other hand it rules out exposure to potentially useful peripheral information (and shouldn’t this be getting more important?). As a result, are they becoming even less proactive as they strive to become more reactive?