There does seem to be some correlation between size and standard deviation of returns, but it is important to look for factors driving the correlation. Funds with less risk might appeal to more investors and become more sizable. There are less assets in which a large fund can take a meaningful position, and those assets might be less risky. However, large hedge funds do fail, and some small funds, while still risky like all hedge funds, fit the needs of some risk-averse investors. You need to contact an investment advisor to find investments that meet your specific risk profile.