A source of strength is that the firm has been skilled at holding onto portfolio management talent, providing continuity for strategies, as proven by low turnover over the past five years compared with others in the industry. The firm charges fees on open-end and exchange-traded funds that are on par with category peers. On average, fees are within the middle quintile, giving it neither an advantage nor disadvantage compared with the competition. A notable weakness of First Manhattan is the inexperience of its longest-tenured managers compared with other asset managers. Managing capital through a full market cycle is a challenging prospect for seasoned managers, but with only two years of average tenure across their management team, there is cause for concern.
In a competitive industry, First Manhattan does n't differentiate itself enough, leading to an Average Parent Pillar rating.