The holy grail is to find active managers who can add value. The combined insights that these two papers suggest avoiding large managed funds, especially those under the control of managers who are concurrently running SMAs alongside.

The Mismatch between Mutual Fund Scale and Skill

- Yong Song | SSRN | August 2017

Actively managed investment funds face a decreasing return to scale as their potential returns are diluted by the amount of funds that are managed (Berk and Green, 2004).

In this paper, the author demonstrates that there is a mismatch...