A new white paper from from Spring Mountain Capital suggests that large hedge funds are not the sure route to out-performance. From the press release:
"Large hedge funds may be perceived as less risky than smaller ones, but our research and experience suggests that this focus may be misplaced; and in the future, the opportunity costs of investing in large funds may be higher and the safety benefit of investing in large funds may be lower than investors currently expect," said Jason Orchard, co-author of the white paper. "Today, there remain economic, policy, and investment uncertainties that are likely to require managers to be nimble and adjust exposures quickly. Size could be a significant deterrent if this environment continues or were to worsen," Mr. Orchard added.
The white paper also highlights:
This is the personal blog of Emory Redd.
This blog is not investment advice. This is not a solicitation to invest. Don't take candy from strangers.
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