Re: Would a mutual fund manager to better with $1 billion or $100 mill
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But dont they normally divide those big funds into a bunch of managers with like $300 mill each.
I know a good friend of my dads who I normally play golf with works as a fund manager for ubs bank, and he runs $300 mill. Just wondering...
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some do, some don't. I'm pretty sure most fund families don't do this though.
By dividing it up, to say 7 different sectors, with each getting a % to manage, you solve 2 problems:
1) Each can specialize and delve into their own sector
2) and possibly more important:
the stability of the fund is not just dependent on 1 person leading it. That way, even if one 1 person leaves, the fund should continue to do great. Versus, for funds where 1 manager has been there for 20+ years of prosperity, it's somewhat unknown how the new manager will do.
At the same time, there's something to be said for having 1 person set the vision and direction of the fund, rather than a few competing.
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