The how top endowments and foundations turn small stocks into big returns Bares, Brian T. creator text bibliography nju Hoboken, N.J Wiley 2011 monographic eng

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187 p. : ill. The historical returns of small-cap stocks have exceeded those of mid-cap and large-cap stocks over long time periods. The additional return experienced by small-cap investors has occurred despite inherent disadvantages in the asset class. The excess return available from small-cap stocks can help large foundations, endowments, and other similar institutional investors overcome the drag of inflation and the drain of annual spending. These institutional investors are in a unique position to fund new and often untested managers who are in the best position to benefit from the return premium of small-cap stocks and from the relative lack of professional participation in the space. The Small-Cap Advantage: How Top Endowments and Foundations Turn Small Stocks into Big Returns is a must-have book for aspiring and existing small-cap managers and the institutions that would hire them. It is an insider's account of institutional small-cap investing. The book details the investment, fundraising, and operational challenges encountered by small-cap managers. The Small-Cap Advantage helps aspiring small-cap managers understand the state of the institutional investment management industry. It debunks the notion that small-cap managers who lack long track records or high levels of assets under management are undeserving of institutional funding. It explains the fundraising process for aspiring small-cap managers and how they can handle many of the challenges that come with successfully increasing strategy assets. The Small-Cap Advantage provides endowment-model institutions with a deeper understanding of the unique issues faced by specialist boutique managers who focus on the small-cap space. It will also assist institutional due diligence teams in their evaluation of small-cap managers. --Book Jacket. The Small-Cap Advantage -- Two Sources of Outperformance -- Small-Cap Definitions -- The Outperformance of Small-Cap Stocks -- Outperformance within the Small-Cap Space -- Chapter Summary -- Small-Cap Disadvantages -- Research -- Trading -- The Small-Cap Graveyard and Reverse Survivorship Bias -- Capping Assets -- Chapter Summary -- Small-Cap Investment Philosophy and Process -- Institutional Approach -- Passive and Enhanced Indexing in Small-Cap Stocks -- Active Management in Small-Cap Stocks -- Chapter Summary -- Small-Cap Manager Organization -- Creating Value for the Manager -- Launching a Small-Cap Firm -- Investment Team -- Chapter Summary -- The Fund-Raising Process -- General Marketing Strategy -- Institutional Clients -- Foundations and Endowments -- Consulting Firms Pension Plans -- High-Net-Worth Individuals -- Wrap Fee and Other Subadvisory Relationships -- Databases -- Third-Party Marketers -- The Chicken-and-Egg Problem -- Chapter Summary -- Fees, Agency Issues, and Other Performance Drags -- Common Performance Drags -- Frictional Costs in Small Caps -- Institution-Manager Agency Issues -- Agency Issues in Trading -- Benchmark Tyranny -- Commingled and Separate Accounts -- Chapter Summary -- Small-Cap Managers and the Endowment Model -- The Endowment-Model Approach to Small Caps -- Finding an Edge -- Funding Smaller Managers -- Funding Emerging Managers -- Finding Emerging Managers -- Chapter Summary -- Evaluating Small-Cap Managers -- Institutional Due Diligence Teams -- Assessing Manager Risk -- Assessing Investment Philosophy -- Analyzing a Manager's Process -- Evaluating Firm Principals -- Assessing Manager Operations -- Contributions and Withdrawals -- Chapter Summary. HKBU library Brian T. Bares. YT2025 M09 Small capitalization stocks Institutional investors Endowments Finance Portfolio management Investment advisors HG4971 B223 S 2011 9780470615768 0470615761 SDU 100729