@article {Beckers9, author = {Stan E Beckers and Greg Vaughan}, title = {Small Is Beautiful}, volume = {27}, number = {4}, pages = {9--17}, year = {2001}, doi = {10.3905/jpm.2001.319808}, publisher = {Institutional Investor Journals Umbrella}, abstract = {The authors examine the impact of fund size on investment performance. Ultimately every investment strategy will become self{\textendash}defeating when too much money chases the same opportunity. It has therefore become common practice among successful fund managers to close funds to new money. It is mostly a mystery as to where and how this line gets drawn, especially since these restrictions are almost invariably lifted (with the pressure of increased client demand). Every asset management strategy has a natural limit beyond which growing a fund will significantly retard performance. The authors use real{\textendash}life simulations to document how soon a performance drag sets in and how significant it is. They thus provide a framework to establish maximum fund size.}, issn = {0095-4918}, URL = {https://jpm.pm-research.com/content/27/4/9}, eprint = {https://jpm.pm-research.com/content/27/4/9.full.pdf}, journal = {The Journal of Portfolio Management} }