Hedge Funds

Size matters when going direct, says Callan


Investors looking for value and return in their hedge fund portfolios may want to consider the size of their prospective manager’s fund prior to allocating, according to a new white paper from Callan Associates.

“In contrast to an expanding waistline from eating too many Doritos, the consequence for piggish behaviour in the hedge fund world is not immediately and directly obvious,” the report stated. Researchers said managers overseeing $5 billion or more represent only 5% of the hedge fund managers, but as a peer group oversee about 61% of the industry’s capital.

The report’s author, Jim McKee of