That's not quite right. For super high Sharpe ratio strategies with low capacity, sure. But for a single digit SR with high capacity your expected profit will b

That's not quite right. For super high Sharpe ratio strategies with low capacity, sure. But for a single digit SR with high capacity your expected profit will be higher by taking a fee on a larger capital base. If you also add in asymmetric fee structures then you see why hedge funds make sense.