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Can a sudden change in asset size affect performance?

April 26, 2017affect ASSET PERFORMANCE size Sudden

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Can a sudden change in asset size affect performance?

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Asset size also matter in case of small funds when they suddenly become big. For example, the excellent handling by the fund manager of a small fund may suddenly become popular and draw a lot new unitholders. The sudden flush of funds could lead to a change in the manager’s investment style that might record a drop in performance.