BOSTON — Show us the profits, the skeptics shout.
Nanotechnology will amount to nanoprofits, they worry as they tick off a list of technologies from artificial intelligence to virtual reality that looked cool in the lab but have foundered commercially.
Such voices were all but drowned out this week at Nanotech 2004, the industry’s largest conference.
Does Fund Size Erode Mutual Fund Performance? The Role of Liquidity and Organization
American Economic Review, 2004
In this study, Associate Professor Joseph Chen and his co-authors investigate the effect of scale on performance in the active money management industry. They first document that fund returns, both before and after fees and expenses, decline with lagged fund size, even after adjusting these returns by various performance benchmarks. They then explore a number of potential explanations for this relationship.