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Why small hedge funds look set to outpace larger rivals in 2023

‘One of the biggest issues within the hedge fund industry is the high concentration of flows to the largest managers with the strongest brands’

One of the biggest advantages small hedge funds have over their large competitors is that they are not constrained by big transaction sizes
One of the biggest advantages small hedge funds have over their large competitors is that they are not constrained by big transaction sizes Photo: Valerii Evlakhov/Getty Images

Large hedge funds had a mixed 2022 as macro funds saw strong gains while equity funds witnessed steep declines.

But the next 12-month picture could change in favour of smaller hedge funds, whom advisers expect will outperform their larger counterparts as they take advantage of specific market opportunities on account of their size and ability to be nimble.

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