Big funds may have edge over smaller ones if factors other than performance taken into account

Size dilemma

two-goldfish-in-bowls-of-water-big-fish-in-small-bowl-vice-versa

A plethora of research has long shown small hedge fund managers outperform their large counterparts over the long term. Investors have been listening. The investment pendulum is starting to swing towards smaller managers.

However, in an environment of continued market stress and legislative uncertainty, the case for allocating more to smaller managers is far from black and white.

For one thing operational risk cannot be ignored. Evidence shows larger funds have the edge when markets are stressed

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here