Even a young fund typically owns several dozen stocks, providing many data points.
And they would have to figure out how to keep highflying young fund managers from jumping to other fund companies.
Here is why: Big fund companies have many ways to increase the returns of young funds that they want to promote.
It is still too early to calculate performance in such young funds, and one big hit could more than compensate for many duds.
"It's definitely the case that some funds, young funds, small ones, were able to exploit that," said Peter Di Teresa, senior editorial analyst at Morningstar Inc. "It's definitely a bull-market phenomenon".
"He's the brightest and hardest working young fund-raiser to hit the Democratic Party since Tony Coelho," said Mark Weiner, the treasurer of the Democratic Governors Associationn and a big-league Democratic money man himself.
Mr. Grebow, the young fund superstar who was brought down when the Securities and Exchange Commission accused him and his partner of fraud last year, could have been stopped much sooner if the industry had a self-regulatory organization, according to Mr. Weidner.
Traders from places like Venice, Genoa and Pisa in the late 12th century managed to win for themselves the sort of advantages and loopholes in Constantinople that bright young fund managers would kill for today: they negotiated positions that allowed them to undercut local traders, alongside smart commercial treaties that let them minimize or even sidestep their taxes.
For Schroder Ultra and many young funds, though, you pay for the chance to reap the scorching returns.
Dedio left DWS Small Cap Growth Fund last year to take over Julius Baer U.S. Small Cap Fund, a young fund with just $11 million in assets, no load and expenses of 1.5% of assets yearly.
