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For years, the data confirmed the theory that small funds perform better than large ones.
Studies have shown that little funds perform no better than big funds, on average.
As a group, the study said, little funds perform no better than big ones, though their returns vary more widely.
And they could store up problems further ahead should the venture funds perform poorly.Remarkably, this battle for talent has not so far shown up in accelerating economy-wide wage inflation.
In his book "The Big Investment Lie", Michael Edesess argues that "the implication often made from hedge-fund statistics that hedge funds perform better than other funds or than the market as a whole, with less risk is completely wrong .But even if Mr Edesess is right, the opposite impression that hedge funds generally behave in a highly risky fashion also seems to be wrong.
Yet, they all believe that SR funds perform worse than conventional funds.
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Three growth funds performed best.
More stable funds performed better; more volatile funds performed worse.
In the past, small buy-out funds performed better than larger ones, but that has recently changed.
There have been periods of respite for the markets, like 1999, yet even then the funds performed poorly because they did not invest in technology stocks.
But some companies sold policies with a promise that no matter how badly the mutual funds performed, the policy would pay at least as much as was invested.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com