Wednesday, October 10, 2012

Size Does Matter…

It turns out that when looking at funds over the long term, it may make sense to go bigger. It seems that smaller funds just aren't able to put up the numbers when compared to their larger peers according to study of small, medium and large funds.

The study by fund analytics firm, Pertrac, suggests that larger funds perform better than smaller funds in down markets.

The study, which is in its sixth year, took a look at performance trends of funds of all shapes, sizes and strategies during the period stretching back from 1996 to 2011.

On average, the study found that the “average large” fund outperformed the “average small fund”.

The study used fifteen hedge fund databases that took into account funds that have gone out of business during the period.

Pertrac said the study defined small funds as those with assets under management of less than $100 million,mid-size funds as those with assets of between $100 and $500 million and large as those having assets north of $500 million. To learn more about the study, click here.


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