Ariel Capital Management
1996 | Case No. E28
This case describes the formation and growth of Ariel Capital Management, a money management firm owned and operated by a charismatic African-American leader. The case gives some background on the founder and the origin of the firm, as well as its philosophy and initial growth. However, after many years of success, the firm started to face difficult times as its funds started to underperform the major stock market indices. Some major clients began to leave the firm and the amount of money under management declined. The company was faced with four major issues: how to stem the loss of institutional clients and the decline of money under management, how to transcend the personality of the founder so the firm can continue even after his departure, how to develop the mutual funds part of the business, and how to deal with minority issues in its marketing to new clients. Teaching Note available.
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