Last week's study from Boston Consulting Group is making bigger waves. The research -- which predicts tighter margins for fund firms and an uptick in m&a activity -- gets follow-on treatment by Sam Mamudi, author of this morning's WSJ Fund Track.

Brent Beardsley, a partner at BCG in Chicago, is not optimistic for fund firms: "Many asset managers haven't seen anything like this in their professional lives -- they've always had high margins," he told Mamudi. "Most firms are ill-prepared for more competition and a harder environment in which to make profits."

Beardsley argues that successful managers will "have a competitive advantage and clearly define their business."

The paper points out two winners in this environment: Pacific Investment Management Co. (Pimco) and Vanguard Group. It also points to BlackRock's purchase of Barclays Global Investors from Barclays PLC as a possible kick-off to a round of consolidation. 

Edited by: Sean Hanna, Editor in Chief


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