One of the most hotly debated questions in asset management is whether smaller managers outperform their larger counterparts. There have been many studies to test the theory that significant AUM growth undermines performance and we have published on the topic and collated a number of the studies as well. Although there is some dissension, most studies we found determined this theory to be true.
The reasons seem intuitive. Smaller managers are be more nimble and can opportunistically take advantage of developing trends in the markets as well as invest in smaller capitalization securities that are off limits to their larger peers. They might also be hungrier for performance gains, motivated by the performance fee more so than the management fee, which is small at lower asset levels.
Given this reasoning along with the findings of industry studies, some of our institutional clients continue to show an appetite for skilled managers running smaller amounts of assets. To help them with their search, we set out to create a “best of” list focusing on smaller managers. We ranked managers on consistency with which they demonstrate these skills. For each year the managers landed in the top quartile for each skill they were assigned a point. What we were left with were the 18 best performing emerging funds from 2010-2015.
Download our latest report to discover our list of these high-performing funds.
What's in the report?
- The 18 Highest-Performing Emerging Funds
- Full Profiles on the Top Three Managers
- Detailed Performance Stats & Top Positions Entering 2016