a.) It's much easier to maintain high returns with lower amounts of invested capital. Warren Buffett has talked about this at length; when you're investing $5M, there are a large number of undervalued opportunities where you can gain outsized returns, but when you're investing $500B, you are the market, and it's extremely unlikely that you'll get above-average returns.
b.) Private capital with a personal relationship to the fund manager is usually more patient. Many public funds have a problem where all the individual investors head for the exits at the slightest sign of trouble, but the best investment opportunities are usually available when everybody else is panicking.
Basically, if you want to do well in investing, you really need to do it yourself, and you need to have an information advantage on everyone else in the market. It's a field that rewards being smarter than everyone else, not being more cooperative.
If it was really that easy to identify undervalued companies, you'd think more people would be doing it. I don't think many managers, or individuals, beat the market by a lot, if at all.
I agree, but people who entrust their money to others to manage beat the market by even less. Remember that on average, you should expect to earn an average return minus fees; the one part of that equation that is given are the fees.
b.) Private capital with a personal relationship to the fund manager is usually more patient. Many public funds have a problem where all the individual investors head for the exits at the slightest sign of trouble, but the best investment opportunities are usually available when everybody else is panicking.
Basically, if you want to do well in investing, you really need to do it yourself, and you need to have an information advantage on everyone else in the market. It's a field that rewards being smarter than everyone else, not being more cooperative.