Is the Credit Suisse/Tremont LEA Index affected by survivorship bias?
Most indices are affected by some form of survivorship bias. In order to minimize this effect, the LEA 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 begins to liquidate, its performance remains in the LEA Index until it fully liquidates and ceases to operate, 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 LEA Index Rules document for additional information.
