Smaller, newer hedge funds are outperforming the Goliaths, according to PerTrac Financial Solutions LLC research, Investment News reports. The New York-based developer of investment analysis software came to this finding through two studies of the hedge fund industry conducted in March and December of 2007. In 2007, the average return of hedge funds with less than $100 million in assets was 11.74%, while funds with between $100 million and $500 million averaged 10.27% and funds with more than $500 million averaged 10.22%. The calculation of annualized returns was even more dramatic. Smaller funds had an annualized return of 16.01%, while mid-sized funds averaged 12.5% and larger funds averaged 11.5%. http://www.emii.com/Article.aspx?ArticleID=1934218&LS=EMS180814 No surprise here...
Those returns are not that great. I have made a 38% return in 2 months buying Visa stock a few days after it went public.
HF's have become institutionalized for the most part. they use to be the rebel, the bad boy in the room rebelling against the institutional behomouths. Now, they have become the enemy. opportunity and edge still exist in smaller niche strategies and funds, however, it is for the most part forever gone in the traditional hedge fund world. surf