Proportion of smaller hedge funds in industry drops off

Data also shows decreased tendency for funds worth less than $250m to outperform


The maturation of the hedge fund industry, both in term of size and age, continued into 2014 with the proportion of hedge funds with less than $250 million assets under management (AUM) declining, while investor interest in medium and large hedge funds seems to be growing as these two groups now make up their largest share of the reporting industry to date, according to data provider eVestment.

Data shows the tendency for smaller funds to outperform has declined. By average annual returns, the d