Mid- sized funds also have a relatively higher Sharpe ratio, which shows that they earned returns at lower risk.

However, armed with an out performance over larger peers, medium sized funds are becoming more active to lure investors.

Over the last few years, small- and medium- sized funds have found it tougher to raise fresh capital and stay in business.

Mid- sized funds have readjusted their fee structure to around 1.75 or 2 percent of the committed capital.

Mid- sized funds in Asia should also benefit from a large number of global institutional investors looking to raise exposure to the region, analysts said.

With all that going on around him, Gundlach still had no trouble railing against mega- sized funds that use derivatives to get exposure to bonds.

Even as Pagoda was in the black, it was becoming tougher for small and medium sized funds to raise fresh capital and stay in business.