>High return investment opportunities are limited in number and amount of cash which can be deployed into them. As cash under management grows a higher percenta

>High return investment opportunities are limited in number and amount of cash which can be deployed into them. As cash under management grows a higher percentage of it gets invested into lower return investment opportunities which are better than risk-free rate, reducing the overall performance of the fund (relative, not absolute). Larger funds supposedly being more risk averse COULD be a reason for less yield but it might as well on average yield MORE. All you said is just hypothetical. And again, the article frames it as an incentives issue, which it isn't. >Not really fair to compare performance between funds with such dramatic differences in cash under management IMO. This literally makes no sense at all. OF COURSE you can compare them and you should. If I have a billion dollars to invest I could invest it all in one fund or I could spread it out of a thousand small funds. It makes no sense to NOT compare them. Is a dollar from a small fund's return different than a large funds? No.