6 ms·
Don't the top hedge funds consistently outperform the market?
by pa5tabear 11y ago
Don't the top hedge funds consistently outperform the market?
- theptip 11y agoAKA the survivorship bias.
- melling 11y agoWhat percentage of the 11,000 hedge funds are you referring to? http://www.cnbc.com/id/101955552 http://www.cnbc.com/id/101955552
- the_gastropod 11y agoYes, the top funds consistently outperform the market. No, the top funds are not the same year-to-year. Predicting which funds will out-perform is the hard (aka impossible) part.
- benmathes 11y agoDon't be fooled by randomness and survivorship bias. Those aren't the same funds each year. Thousands of funds trying to beat the market at a seemingly-random game? A small few will get lucky.