I know a couple fund guys, and one in particular runs a really aggressive fund. His example sort of presents an exception to what you're saying, but it mostly d

I know a couple fund guys, and one in particular runs a really aggressive fund. His example sort of presents an exception to what you're saying, but it mostly doesn't for reasons you'll see in a moment. I can't really discuss his strategies for producing double-digit-per-month returns, but suffice it to say, the money involved doesn't "scale". Further, it's to the fund's advantage from an institutional as well as an individual perspective to not "outgrow" their ability to maximize their returns on extant capital. Their incentives are structured on returns and not money under management. They're also a purely private fund, it's almost entirely friends/family/registered investors that are somebody's cousin, etc. They don't really need more money. They just need nobody to notice how they're making their money. Edit: Worth noting as well that they're not part of the wall street scene nor are they based out of the greater new york area. They aren't into the marketing/sales side of running a fund, they're mostly programmer/quant/trader types that are in it for the numbers game.