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IA Hidden Gem Club to herald under-the-radar winners

For instance, a study published in 2014 by the US National Bureau of Economic Research found funds’ performances drop off at a steady rate as they become older. The report looked at 3,000 US portfolios over a 30-year period and concluded that selectors confronted with two similar funds would, as a rule of thumb, be better off choosing the newer vehicle.

The trend may be further exaggerated by the rise of what fund selector Jon Beckett terms ‘supertanker funds’: portfolios that have become so large that their performance begins to suffer as a result. We’ll continue to look at the opposite end of the spectrum in a bid to help readers offset these potential issues.

Dan Jones is editor of Investment Adviser