$100bn fund $100bn black box

Does having a large pot of money to manage hurt investment performance? The dismal recent returns of Fidelity’s $52bn Magellan fund, whose latest manager departed this week after years of failing to beat the market, suggests this may be the case. Jim Simons of Renaissance Technologies, a hedge fund group, believes he can succeed where Fidelity has failed. Renaissance is marketing a new fund which aims to beat the S&P 500, with lower volatility. Many other hedge funds make similar claims. Howeve...