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by pa5tabear 3992 days ago
Don't the top hedge funds consistently outperform the market?
4 comments

Yes, the top funds consistently outperform the market. No, the top funds are not the same year-to-year. Predicting which funds will out-perform is the hard (aka impossible) part.
What percentage of the 11,000 hedge funds are you referring to?

http://www.cnbc.com/id/101955552

AKA the survivorship bias.
Don't be fooled by randomness and survivorship bias. Those aren't the same funds each year. Thousands of funds trying to beat the market at a seemingly-random game? A small few will get lucky.