JOHCM chief executive Gavin Rochussen speaks to Julia Rampen about the industry's 'small fund problem' and why he believes performance fees can still be justified in a new era of price sensitivity.
"Small funds are like old shoes," according to Gavin Rochussen. “Why do we not throw old shoes out? It is because one day you think they might wear them.” J.O. Hambro Capital Management’s chief executive has a precise view of what makes a good fund, from size and investment process to manager remuneration. The firm may be best known for imposing capacity limits on its funds, but Rochussen also has concerns about the performance of funds that are overly small. “Part of the problem with our whole industry is there are far too many funds out there that are subscale,” he said. “I canno...
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