Is Vanguard Getting Too Big for America’s Britches?

Fund manager Vanguard (AUM $6 trillion) has reshaped more than the rural Pennsylvania it calls home, according to an article in the Financial Times that discusses how the firm has reshaped the investment management world and raised questions about whether its girth warrants monitoring. Specifically, the sheer size of the firm and its “deepening control over the stock market could at some point become unhealthy.” According to the firm’s CEO, Tim Buckley, the company’s size… Read More

A Hedge Fund Performs by Staying Small

Managers of the Netherlands-based Plethora Precious Metals Fund say that the “key to getting monster-sized returns in mining equities is to be small,” according to an article in Bloomberg. Compared to fund giants like BlackRock and Vanguard, Plethora’s $20 million in assets is small, but the fund isn’t looking to get bigger. The article reports that the fund invests in young mining exploration companies, mostly in gold. Its founder, Peter Vermeulen, said in an interview,… Read More

Study: Smaller Hedge Funds Beat Largest Funds by Wide Margin

  Nick Motson and a colleague from City University London recently concluded that small hedge funds outperformed large hedge funds on average over the 20-year period 1995-2014.  The smallest hedge funds, based on assets under management, returned 0.75% per month or 9% annually, compared to 0.61% or 7.32% annually for the largest funds. Given that 90% of the assets managed by hedge funds are with firms managing over $1 billion, while firms with under $100… Read More