[lutusp]

> ... one technique used by some investment management companies is to launch enough funds that some will outperform the market by chance. Then they quietly close down all those that perform equal to, or worse than the market average and trumpet the success of the one or two that lucked out.

Yes, that's how independent investment advisors puff up their reputations also. In fact, it's the basis of a sneaky and convincing promotion scheme called "Miracle Man":

http://arachnoid.com/equities_myths/index.html#Miracle_Man

People who hear only the result of Miracle Man often say, "That's impossible!" But it's so easy that it can be automated.