Entrepreneurs or international conglomerateurs, or large financial institutions buy or create mutual fund management companies to create a return on their own capital.

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It was this kind of violent and sudden volatility that caused the highly leveraged Long-Term Capital Management fund to require a bailout by Wall Street institutions in the fall of 1998.

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Other financial institutions, among them life insurers and fund-management firms, have not started to mend their ways.

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However, traditional fund management business, focusing on both mutual funds for retail clients and segregated accounts for institutions, have been regularly integrated into underwriting and brokerage firms over the years.

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