Anna Khan

It is true that the immense size of funds can sometimes resemble a hungry monster difficult to feed, but the compression of returns is not an inevitable fate for all large players.
Some see a scene where opportunities become scarce, but this is often a sign of a lack of strategic vision or limited understanding of the nuances of regional markets.
A large fund, instead of merely seeking targets, can forge new strategic alliances or support major infrastructure projects that, by nature, absorb massive capital without immediate pressure on returns.
For example, our fund has invested in national development initiatives in Africa, not for quick gains, but for stable growth and long-term influence, which is another kind of reward that transcends usual performance metrics.
The pace of large-scale investment requires patience, not a blind race for immediate returns.

The concept of "perpetual" for a source of funding is illusory; even the insurance fleet is a finite resource with a limited lifespan.
What many consider as free capital often turns out to be a contingent liability that reduces the room for maneuver.
Strict regulatory requirements from SEBI and RBI in India quickly turn this "fleet" into a concrete liability if underwriting management fails, as seen with insurance companies facing unexpected claims increases during the pandemic, forcing them to mobilize reserves that could have been invested.
Our investment capital is a too precious resource to let it dilute like that.

The residual alpha of 0.1% for Berkshire Hathaway, even after factorial adjustment, is not an irrefutable proof of size restrictions as claimed.
With fresh eyes, should we really conclude that an entity of this scale maintaining a positive, even minimal, alpha is fundamentally constrained?
It resembles more a remarkable performance given its deployed capital than a sign of weakness; just because we have sunk so much attention into the size restriction thesis, it doesn't make it true.
If Berkshire found a massive asymmetric opportunity tomorrow, such as an undervalued company buyout worth several billion, this influence would be conditional and not decisive.

The idea that the size of managed capital intrinsically limits sustained alpha is a persistent noise in markets. Berkshire Hathaway, with its 19.7% compound annual growth over six decades, demonstrates that disciplined management and strategic capital allocation can transcend this supposed limitation. Opportunities change in nature with size, shifting from small caps to strategic acquisitions and significant holdings, which does not eliminate value. The ability to identify quality assets remains the controllable factor, as illustrated by the acquisition of Burlington Northern Santa Fe. It is crucial to distinguish external constraints from internal management skills.