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Research Finds Smaller is Better for Hedge Funds

11 May 2018

Institutional Investor is reporting on research that indicates smaller hedge funds are more likely to outperform larger hedge funds. The researchers separated hedge funds into three categories: Small (less than $10 million); Medium ($10 - $100 million); and Large ($100 million +) and included data from 1994 to 2016. The study points to the disincentive associated with size – larger firms can “live” off the management fees and more focused on gathering assets. For more details, here is link to the research report.