(Barron’s) Bigger hedge funds didn’t do as well as smaller ones over a recent 20-year stretch, and that disparity was even more pronounced during the 2008-09 financial crisis. So concludes a working paper by three finance professors at City University London. Among investors, however, “the demand has been for larger funds,” says Nick Motson, one of the paper’s authors. As of Oct. 31, an estimated 90% of the nearly $3 trillion of global hedge fund assets was in the hands of firms that manage more than $1 billion, according to HFR, a Chicago firm that tracks the industry. In contrast, firms overseeing less than $100 million accounted for under 5% of total assets…..
How Small Hedge Funds Way Outperform Bigger Rivals
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