Hedge fund size determines performance

AUM and performance appear intrinsically linked

little-fish
Institutional investors chase hedge fund performance

Large funds no longer deliver best performance. To get a good return investors need to put money into small funds. 

This aphorism has become the standard mantra for many, particularly those who are trying to get institutional investors to put more money into funds that have $500 million or less in assets under management (AUM).

In The Effect of Investment Constraints on Hedge Fund Investor Returns, Robert Kosowski examines the effects of investor restrictions – what academics call ‘frictions’– a

To continue reading...

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 indvidual account here: