Boston is home to some of the top investment firms in the country. As one of the major financial hubs in the U.S., Boston boasts a thriving investment industry with firms managing assets across stocks, bonds, real estate and more. This article takes a closer look at several of the leading investment firms based in Boston.
Fidelity and Putnam – Two of Boston’s Largest Asset Managers
Fidelity and Putnam Investments are two of the oldest and largest investment firms headquartered in Boston. Founded in 1946, Fidelity had over $2.7 trillion in assets under management as of 2018, making it one of the largest asset managers in the world. The firm is best known for its actively managed mutual funds, but also offers brokerage services, retirement accounts, wealth management and index funds. Putnam, established in 1937, manages over $180 billion in assets. The firm offers mutual funds, ETFs, institutional portfolios and other investment products covering stocks, bonds and absolute return strategies.
Pioneers in Quantitative Investing – Grantham Mayo van Otterloo and PanAgora
Two Boston-based firms were pioneers in bringing quantitative and technology-driven investment processes to institutional asset management. Founded in 1977, Grantham, Mayo, van Otterloo (GMO) is a leader in quantitative investing. The firm uses computer-based models to analyze market inefficiencies and has over $60 billion in assets under management. PanAgora Asset Management, established in 1989, is another leader in quantitative investing, using techniques like machine learning and data science to inform its investment strategies. PanAgora manages over $40 billion in institutional and retail assets.
Private Equity Leaders – Bain Capital and Advent International
In addition to traditional asset management firms, Boston is also home to some of the world’s leading private equity firms. Bain Capital, co-founded by former presidential candidate Mitt Romney in 1984, is one of the largest private equity firms globally with over $105 billion in assets. The firm invests across all sectors and asset classes on behalf of institutional investors and high net worth individuals. Advent International, founded in 1984, is another major private equity firm based in Boston. With $54 billion in assets, it focuses on international buyouts and growth equity investments.
Specialized Investment Boutiques
While massive firms like Fidelity and Putnam dominate in terms of asset size, Boston also hosts numerous specialized investment boutiques catering to certain asset classes, strategies or client types. Examples include Baupost Group, a $29 billion hedge fund led by famed value investor Seth Klarman. Boston also has a cluster of private credit and specialty lending firms like Audax Group, an alternative asset manager overseeing more than $26 billion. A number of registered investment advisors focusing on high net worth clients are also based in Boston.
In summary, Boston is home to some of the oldest and most influential investment firms and asset managers in the world. The city boasts a diverse range spanning mutual funds, ETFs, hedge funds, private equity, venture capital and beyond. For those seeking financial services careers, Boston’s investment industry presents abundant opportunities.