Why dont funds that get too big break up into smaller constituent funds
PE firms have been doing this since their inception - AUM of the entire firm consists of funds raised separately. Why don't HF that get too big to manage effectively and liquidly do this? Break each constituent fund into a separate strategy or other differentiating factor like geography maybe
I know this has been done already - Tiger Global Management, etc. Lead PMs also run sub-portfolios within the parent firm, essentially a MM fund. So why do funds still get too big all the time.
I guess the logistics of this is a problem, kinda hard to hire the right people who share the same philosophy to run the sub-portfolio. And the short-term nature of the business unlike PE makes it hard for the sub-portfolios to not compete with each other?
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