Impact of Fund Size on Hedge Fund Performance

  title={Impact of Fund Size on Hedge Fund Performance},
  author={Manuel Ammann and Patrick Moerth},
In this article we investigate whether the increase in assets flowing into the hedge fund industry diminishes returns and, in particular, whether larger hedge funds underperform smaller hedge funds, as is often conjectured due to limited capacity in certain hedge fund strategies. The impact of fund sizes is analyzed with respect to fund returns, standard deviations, Sharpe Ratios and alphas derived from a multi asset class factor model. ________________________________________________ In the… CONTINUE READING