Small Is Beautiful for Hedge Funds in a Crisis, U.K. Study Finds


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An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.

By Will Wainewright, Bloomberg,

Smaller hedge funds outperform larger ones, especially during times of market turmoil, research published by London’s City University showed.

The report by the university’s Cass Business School analyzed the performance of 7,261 funds from 1994 to 2014.

“On average investors were better off investing with a small hedge fund instead of a large one in times of crisis,” said researchers Andrew Clare, Nick Motson and Dirk Nitzsche. Smaller hedge funds performed better because they placed more restrictions on investor redemptions and investments were less correlated to market risk, they said.

The research also found a negative relationship between hedge fund age and performance.

“This result indicates that hedge fund managers do not age well,” it said.


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