Ibbotson finds bigger hedge funds perform better

Findings from research by Ibbotson Associates has flown in the face of traditional wisdom and found bigger hedge funds do better. Roger Ibbotson, founder of the firm, said when looking at funds in the 10 years to 2004 he found that annualised returns fell commensurately with size, from 13.6% for the 1% of largest portfolios, down to 9.2% for the smallest 50%. As smaller funds were added to the research, annualised returns fell. Ibbotson said concentration of assets in the largest funds meant the top 5% by size accounted for more than $5bn in assets. The largest 5% of funds returned 11%, t...