Hedge Funds: The Living and the Dead

  title={Hedge Funds: The Living and the Dead},
  author={Bing Liang},
  journal={Journal of Financial and Quantitative Analysis},
  pages={309 - 326}
  • Bing Liang
  • Published 1 February 2000
  • Economics
  • Journal of Financial and Quantitative Analysis
Abstract In this paper, I examine survivorship bias in hedge fund returns by comparing two large databases. I find that the survivorship bias exceeds 2% per year. Results of survivorship bias by investment styles indicate that the biases are different across styles. I reconcile the conflicting results about survivorship bias in previous studies by showing that the two major hedge fund databases contain different amounts of dissolved funds. Empirical results show that poor performance is the… 
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