Re: Danoff @ Contra
[ QUOTE ]
The disadvantage of a large fund is having to do bookkeeping for 1000 stocks instead of 100. there are advantages to a large fund as opposed to a small fund as well. such as not having to sell off assets, sustaining greater variance, etc.
[/ QUOTE ]
Do you really think the administrative costs per dollar under management is greater for large firms? That's ridiculous. You're also incorrect about selling off assets - why wouldn't a large firm have to sell off assets to satisfy shareholders redemptions the same way that smaller funds do?
I don't think DesertCat is misunderstanding anything about this.
|