[bilkoo]

Well couldn't it have been the opposite? Hypothesis: maybe this kind of research has the least marginal return, therefore only the most profitable funds are willing (or able) to invest in it (Bridgewater would invest $10M for 0.1% of improvement while a small fund can't afford that luxury given that 0.1% is fund size independent).

[chris11]

I don't know, I would think that the cost of finding good investment opportunities would increase as a fund gets bigger assuming all the funds have enough money to operate well. An opportunity to invest 20 million dollars with an expected profit of 50% would be a lot better for a fund managing $300 million, but not as exciting for a fund managing $3 billion.