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As money pours into a fund and it grows larger, managers may run out of good ideas, he said.
Yet research by PerTrac suggests that older and larger managers tend to deliver lower absolute returns than smaller and younger ones.
Larger managers, for instance those with billions in assets like Blackstone or UBS, can easily afford to conduct due diligence and have less downside risk than smaller managers who cannot afford it.
Similar(57)
Founded by Gary P. Brinson, an innovator in financial management, Brinson Partners had emerged as one of largest managers of pension plans and also managed a series of mutual funds.
The firm has $6.5 billion under management, and remains one of the largest managers of hedge funds -- investment portfolios catering to wealthy individuals and large institutions like pension funds.
It was one of the largest managers of private wealth, with $1.7 trillion in client assets.
State Street, based in Boston, is one of the largest managers of such funds.
Investors are increasingly inclined towards large managers with long track records and strong brands.
They are often more risk-averse, preferring to invest bigger sums in fewer, large managers with a longer record.
Bernstein is also one of the largest managers of private portfolios for wealthy clients, a coveted field in the industry.
Putting huge sums of cash to work in the hedge fund arena has often led investors to the largest managers, not necessarily those that are the best performers.
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CEO of Professional Science Editing for Scientists @ prosciediting.com