What is “survivorship bias” and do HFN Indices have it?
Like many popular indices commonly used in other markets, Survivorship Bias results from the disappearance or elimination of failed funds. If these funds are not included in an index, the index is upwawrdly biased by the lack of that data since the index only includes funds that have survived. Yes, HedgeFund.net indices have a survivorship bias. If a fund is shut down for whatever reason, it is removed from the HFN indices. HedgeFund.net does not try to correct Survivorship bias.
