According to Tisch he is very leery of investing with the larger hedge funds that have $10 billion or more to manage. His reason for being leery is that size kills returns. Generating outsized returns on $10 billion is very difficult.
Tisch also notes that the hedge fund managers that he speaks to are jealous of him because his capital is permanent. Where a hedge fund manager can have his business destroyed through redemptions after just a quarter or two of underperformance, Tisch can wait and play out his hand.
Below is a lengthy interview with this member of a true value investing family: