Is the Dow Jones Credit Suisse LEA Hedge Fund IndexSM affected by survivorship bias?
Most indexes are affected by some form of survivorship bias. In order to minimize this effect, the 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 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 site or the Dow Jones Credit Suisse Hedge Fund IndexesSM Rules Document for additional information.
