Age Matters More Than Size in Hedge Fund Performance, Says Study

While smaller hedge funds have performed better than their larger brethren, a new study notes that from January 2009 small funds generated the lowest performance of three fund types studied.

According to a study published in April of 2014 by eVestment’s research division titled “Impact of Size and Age on Hedge Fund Performance: 2003 – 2013,” smaller funds had the highest cumulative return from January 2003 to December 2013, at 122.01%. Medium sized funds came 92.86% while large funds generated 82.32%.

Hedge fund: Small funds didn’t fare well from 2009 to 2013

When the study looked at the period after the financial crisis, however, considering performance from January...