I think this is true, but only to a point. It's certainly true when the comparison is 10K to invest vs 10M, as liquidity of markets is not yet a concern and the investor with 10M is suddenly "accredited", can afford to pay a financial advisor, etc.
However, at 10M vs 10B, the 10M investor is much better off. Liquidity becomes a real concern - there's just not that many assets or stocks that can support that kind of allocation.
Small, nimble investors can usually outperform large funds simply by being able to fully enter into positions where larger funds couldn't.
However, at 10M vs 10B, the 10M investor is much better off. Liquidity becomes a real concern - there's just not that many assets or stocks that can support that kind of allocation.
Small, nimble investors can usually outperform large funds simply by being able to fully enter into positions where larger funds couldn't.