Instant History Bias
An inaccuracy in the appearance of investment fund returns that occurs when only new, successful funds report their numbers while new, unsuccessful funds close and their poor returns aren't factored into an investment manager's or investment type's overall performance record.
Instant history bias, which especially occurs in hedge funds, is also called "backfill bias" because hedge fund managers may choose not report fund performance to a database from the fund's inception, but instead choose to "backfill" the database later when they have established a track record of success with a fund.
Other types of bias that exist in hedge fund reporting include survivorship bias (the inaccurate appearance of high returns because poorly performing funds are closed and their returns are not counted) and non-reporting bias (the inaccurate reporting of overall returns because some funds, probably poorly performing ones, decline to report their returns).
These types of bias may make hedge funds appear to be a better-performing asset type than they really are, because hedge fund managers can choose whether to report the performance of their funds.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
History of the National Hockey League — History of the NHL National Hockey League Founding (1917–1942) Original Six (1942–1967) … Wikipedia
History of fashion design — The first fashion designer who was not merely a dressmaker was (Charles Frederick Worth) (1826–1895). Before the former draper set up his maison couture fashion house in Paris, fashion creation and inspiration was handled by largely unknown… … Wikipedia
History of wikis — Contents 1 Pre 1994 1.1 Pre World Wide Web hypertext systems 1.2 The World Wide Web … Wikipedia
Survivorship Bias Risk — The possibility that an investor will make a misguided investment decision based on published investment fund return data that are unrealistically high because a company’s poorly performing funds are closed and their returns are not… … Investment dictionary
technology, history of — Introduction the development over time of systematic techniques for making and doing things. The term technology, a combination of the Greek technē, “art, craft,” with logos, “word, speech,” meant in Greece a discourse on the arts, both… … Universalium
Hedge fund — A hedge fund is a private investment fund open to a limited range of investors which is permitted by regulators to undertake a wider range of activities than other investment funds and which pays a performance fee to its investment manager.… … Wikipedia
Augustine — Gerard O’Daly 1 LIFE AND PHILOSOPHICAL READINGS Augustine was born in Thagaste (modern Souk Ahras in Algeria) in Roman North Africa in AD 354. He died as bishop of Hippo (now Annaba, Algeria) in 430. His education followed the standard Roman… … History of philosophy
Nietzsche, Friedrich Wilhelm — Nietzsche Robin Small LIFE AND PERSONALITY Friedrich Wilhelm Nietzsche (1844–1900) is one of those thinkers whose personalities cannot easily be separated from their achievements in philosophy. This is not because his life was an unusually… … History of philosophy
Newsweek — Newsweek, May 24, 2009 Editor Tina Brown Categories News magazine Frequency Weekly … Wikipedia
Time (magazine) — Infobox Magazine title = TIME image size = 200px image caption = Time s first cover (March 3 1923) editor = Richard Stengel editor title = Editor frequency = Weekly circulation = 3,400,000 per week [… … Wikipedia