Case | HBS Case Collection | November 2010

Morgan Asset Management

by Boris Groysberg, Paul M. Healy and Sarah Abbott


It is 2010 and Guillermo Araoz, the equity research director at Morgan Asset Management (MAM), is considering his research budget for the year. Due to recent declines in the equity markets and MAM's sale of its mutual funds business, MAM has seen a decline in its assets under management and, consequently, in its research budget. The case describes the investment process at MAM, including how stocks are selected and portfolios are constructed, and discusses the way in which the research budget supports this process. Araoz is faced with the challenge of how best to allocate this smaller research budget without negatively impacting the firm's investment process and investment performance.

Keywords: Budgets and Budgeting; Asset Management; Financial Strategy; Investment; Resource Allocation; Research and Development; Financial Services Industry;


Groysberg, Boris, Paul M. Healy, and Sarah Abbott. "Morgan Asset Management." Harvard Business School Case 411-058, November 2010.