Is the Credit Suisse/Tremont Investable Hedge Fund Index affected by survivorship bias?
Most indices are affected by some form of survivorship bias. In order to minimize this effect, the Investable Index does not remove funds in the process of liquidation, and therefore captures most of the potential negative performance before a fund ceases to operate. If a fund enters liquidation, its performance remains in the Investable Index until it fully liquidates, at which time it is removed because it no longer meets investability requirements. Please see the Methodology section of this website or the Credit Suisse/Tremont Investable Index Rules document for additional information.
