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So what Mr. Levine is saying here, is that the expense for fund management is expected to scale nearly linearly with fund-size and New Yorkers have nothing to c
by hurin 12y ago
So what Mr. Levine is saying here, is that the expense for fund management is expected to scale nearly linearly with fund-size and New Yorkers have nothing to complaint about.
- tsotha 12y agoLarger funds do cost more to manage. There's a point at which you have to diversify not to mitigate risk but because large buys drive up the cost of the purchase. Also, there are a whole bunch of extra SEC rules that kick in when you're changing your position in a stock in which you have a nontrivial percentage of outstanding shares.