The historical performance of Berkshire Hathaway, with a compound annual growth rate of 19.7% compared to 10.5% for the S&P 500 over 60 years, shows that size is not an absolute limiting factor for sustained alpha.
This overperformance ratio of 1.88x contradicts the idea that increasing assets under management systematically constrains investment opportunities.
A diversified fund with a solid governance can maintain a high alpha score, as evidenced by Berkshire's strategy of integrating subsidiaries and listed holdings.