ITs vs OEICs: Is capacity becoming a big problem?

FE Trustnet's Joshua Ausden highlights how fund capacity impacts open- and closed-ended vehicles, and picks some standout performers.

One of the most frustrating aspects of fund selection is that many of the most successful vehicles are either closed to the majority of investors or, arguably, handicapped by running too much money.  The rise and fall of many funds is depressingly predictable; they build up a strong track record, find themselves on influential buy-lists, attract increasing media attention, gather too many assets and eventually find it impossible to replicate the kind of performance which gave them such a good reputation in the first place.  Momentum is a powerful thing, and the pace of asset growth ca...