For much of the last decade, assets have continued to flow to larger hedge funds. However, funds’ ability to attract capital and their ability to outperform can often diverge. This has never been more true than it is 2020.
We recently broke down the data to back up that insight with Bloomberg, analyzing performance by AUM. Even among multi-strats, one strategy where larger managers do often outperform smaller ones, funds managing<$500M have outperformed peers with $500M+ in AUM by 600bps this year.