Alpha and Size
Size can be a double-edged sword in investing; while larger firms can generate profits, individual strategies face constraints that limit their ability to produce alpha. As assets grow, alpha may initially hold steady, but once it begins to decline, it can plummet rapidly. The market inevitably reacts to a fund's footprint, making it crucial for teams to recognize capacity limits and make strategic decisions about asset growth.In this clip
From this podcast
Capital Allocators – Inside the Institutional Investment Industry
Luke Ellis – The Man Behind The Man Group (Capital Allocators, EP.214)
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