Small vs large: Which funds did better post-Lehmans?

Small funds often outperform their larger peers, according to research from Thames River multi-manager heads Rob Burdett and Gary Potter.

Their latest quarterly FundWatch report has found small funds tend to beat their larger equivalents because they can be nimble during periods of market turbulence. The report showed out of all the 33 IMA sectors, a universe of 1,268 funds, 313 vehicles have a produced an above median performance over the last three years. Of these funds with better than average returns, 61% have an asset base smaller than their peer group average. "Small funds have outperformed through being more nimble, which has been a useful attribute over the last three volatile years," said Burdett. "Nevert...