Keep your eye on the size - why fund manager capacity matters

David Scobie | Mercer | 31 July 2013

Preface by PortfolioConstruction Forum

The issue of size is often debated when considering whether and how specific funds could be used in portfolios. You don’t want a manager that's too small (profitability issues) or too big (can they really add as much value?).  But is there a Goldilocks size? The answer is, of course, that it depends.

This paper rightly points out that you can't rely on the manager's view on the issue. Managers with high levels of funds und...