Infrastructure Investor's quarterly report reveals stark performance dispersion, with mid-cap funds offering both strongest and weakest outcomes, underscoring manager selection importance. Large-cap and mega-cap funds show more consistent performers, while mid-cap funds exhibit a performance gap more than twice as large between top- and bottom-quartile managers at year nine. "The difference between the top quartile and bottom quartile in the mid-market is bigger than for large-cap funds," says Mikkel Kjaersgaard, head of infrastructure at Denmark's Industriens Pension. "There is higher volatility in the mid-market and in particular smaller funds. If you do small or mid-market funds, the manager selection is extremely important."
Source: Infrastructure Investor · Summarized by HeadlinesBriefing