If this sounds familiar, perhaps it's because there are echoes of the Apalachin Mafia Summit of 1957, minus the killings of course.
In 1957, two members of the Mob – Frank Costello and Vito Genovese – were competing for the position of boss of bosses. On May 2, 1957, Genovese ordered a hit on Costello, who walked away from the attempt when the bullet merely grazed his head. Genovese feared revenge from Costello, who was now in alliance with Albert Anastasia. On October 25, 1957, Anastasia was assassinated in a barbershop in the Park Sheraton Hotel in Manhattan.
Vito Genovese summoned the leaders of organized crime throughout the country…On the summit's agenda were the fate of Anastasia's territory, plans for dealing with the Bureau of Narcotics, the banning of drug trafficking in the organization, and the annoiting of Genovese as the new boss of bosses.
I love the idea of a besuited OppenheimerFunds exec intoning "Today we settle all family business…" as his cohorts pack branded tote bags with weapons, ammunition, explosive stress toys, golf umbrellas with blades in the handles, etc.
By the way, I hope there was tight security at the "Seismic Shift Senior Leadership Forum" – wouldn't want anyone to steal all the alpha in that room.
Okay, but really, the purpose of this post is to save the mutual fund industry.
More from The Reformed Broker:
Every "unified Republican government" ever has led to a financial crash
The Riskalyze report: Advisors go all in on "rising rates"
Larry the Legend – all the highlights
Five years ago, I joked around about the industry dying and making its final stand. In a Miami 2017-esque fantasy I wrote up for Fortune Magazine, I talked about what that might look like. I didn't think it would happen so soon. According to WSJ's Sarah Krouse, "Over the past year, investors have pulled $242.7 billion from funds that bet on U.S. individual stocks, while placing $185.9 billion into U.S. mutual funds and ETFs that track stock indexes, according to Morningstar."
So what can the industry do to reset the situation, change the conversation and stop the bleeding?
I have some ideas. Probably only a combination of all of these things will do the trick…