1
$\begingroup$

My understanding is that MSCI/Barra's model has a very large market share in funds and banks, but I cannot find out how large is the exact market share.

Is there any data on this, or can someone familiar with this give an estimate? By market share, I mean the (ideally AUM-weighted) fraction of institutions that use this, rather than some other, model. Thanks!

$\endgroup$
8
  • $\begingroup$ How do you define "market share" for a model? $\endgroup$
    – D Stanley
    Commented Jun 26, 2021 at 3:05
  • $\begingroup$ @DStanley The fraction of institutions that use its model (ideally AUM-weighted). $\endgroup$ Commented Jun 26, 2021 at 3:07
  • $\begingroup$ It's probably a difficult question because you've got hedge funds and prop desks ( at banks ) that might not disclose what they use. $\endgroup$
    – mark leeds
    Commented Jun 26, 2021 at 5:24
  • $\begingroup$ @markleeds I agree. Just want to get a general sense. Also, what are the major commercial alternatives to MSCI/Barra? (I'm actually not aware of one). $\endgroup$ Commented Jun 26, 2021 at 5:51
  • $\begingroup$ Hi: It's probably best to get an estimate from the MSCI itself. I forget the names but there used to be some smaller competitors. I think there was one called Northfield. I'm not sure if it's still around. $\endgroup$
    – mark leeds
    Commented Jun 26, 2021 at 13:09

1 Answer 1

2
$\begingroup$

The only reference I know of is from this 2018 JEF paper on "risk model crowding".

Barra is believed to lead most providers with around a 50% market share.

Bruno, S., Chincarini, L. B., & Ohara, F. (2018). Portfolio construction and crowding. Journal of Empirical Finance, 47, 190-206.

https://ludwigbc.com/pubs/Crowding_JEF_2018

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.