A new study by David Cohne reveals that larger active funds consistently achieve higher beat rates than smaller counterparts across multiple time periods. The research indicates a positive correlation between fund size and performance consistency, with the smallest funds recording the poorest results in an environment where outperformance is generally difficult to sustain.
The findings challenge conventional wisdom favoring nimble, smaller managers and suggest scale may provide structural advantages for active management. Investors seeking consistent alpha generation should consider fund size as a material factor when evaluating active strategies, according to the analysis available via BI FUND or BI ETF terminals.
Study Finds Larger Active Funds Outperform Smaller Peers Across Multiple Time Periods
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