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...