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Excerpt from Barron's -- "SMAs tend to be smaller than public funds -- $152 million being the median SMA size in the study -- allowing their managers to remain nimble when trading. They also have fewer, more sophisticated, and wealthier clientele. 'The median number of investors in our sample of separate accounts is 12, and they're large ones,' says Martin Gruber, who co-authored the study with Edwin Elton and Christopher Blake. 'So money managers are dealing with each customer on a more personalized basis. If investors are going to withdraw money, the manager can do a lot of planning with them in advance and change his positions in their portfolios accordingly.'"

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