In chaos, small hedge funds do better

Researchers at City University London found that smaller funds hold up better when the world is going haywire, perhaps because of having fewer "flighty" investors who pull their money out at the first sign of trouble, reported WSJ.com. On Wall Street, bigger is often synonymous with better... However, "on average, investors were better off investing with a small hedge fund instead of a large one in times of crisis," concludes the July-dated working paper from the university's Center for Asset Management Research.

Small hedge funds aren't as great as they say

Mark Fahey confronts the view that small hedge funds are better performers.

He writes on CNBC that youth and size are not the same thing. About 85% of young funds—under 2 years old—manage less than $250 million in assets, but only about 14% of all small funds are young. That's down from 42% of all small funds about a decade ago.

"Young" funds and "small" funds don't behave the same when it comes to returns. While young funds do, in fact, tend to outperform older funds, small funds haven't been doing as well in recent years.

Source: eVestment Alliance Copied from: CNBC

Irish fund formations rebound

The number of funds choosing Ireland as their domicile of choice for European asset raising is starting to rebound according to Pat Lardner, head of Irish Funds, the umbrella group for the Irish funds industry. He notes in an interview with Opalesque, that while the value of Irish funds have increased consistently since the......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.