Does size matter?

A recent study compared returns relative to hedge fund portfolio size, offering interesting insight into the performance versus size debate

Investors have witnessed near exponential growth in the alternative investments industry in the last decade with studies citing some 6,000 hedge funds with $1 trillion in assets, up from $50bn in 1990.

As a result, the number of hedge fund managers is up from approximately 1,000 in the late 1990s to more than 6,000 in 2003, which makes it increasingly important to rely on rigorous due diligence when selecting the best-performing managers within the various investment styles and strategies.

While