An inaccuracy recorded in a fund's performance record. This occurs when new successful funds report their numbers, but new unsuccessful funds close and their returns are not factored into the fund's (or fund manager's) overall performance, creating a positive bias in returns. This is a known and relatively common problem in assessing the returns of hedge funds due to their commonly short-lived nature, and the high number of new entries and departures. Also called backfill bias.
Related information about instant history bias:
- Instant History Bias Definition | Investopedia
An inaccuracy in the appearance of investment fund returns that occurs when only new, successful funds report their numbers while new, unsuccessful funds ...
- Instant History Bias > PerTrac
Dec 22, 2011 ... It is perhaps time to admit that eliminating the instant-history bias is arguably as much an art as it is a science. Instant-history bias occurs when ...
- What is instant history bias? definition and meaning
Definition of instant history bias: An inaccuracy recorded in a fund's performance record. This occurs when new successful funds report their numbers, but new ...
- Hedge Funds: A Walk Through the Graveyard - FinancialCounsel.com
his 1995 study, Park referred to this as 'instant history bias.' A related bias known as 'self-selection bias' arises where funds that are unsuccessful in their early ...
- Hedge Fund Returns
The biases include survivorship bias, non-reporting bias, questionable-numbers bias, and instant-history bias. Suppose there were 1,000 hedge funds in ...
- January 2011 - Pictet
index every time a new fund is added suffers from instant history bias. Second, and more commonly, instant history bias occurs at a launch of an index.
- 11.6 Instant history bias
Instant history bias (or backfill bias) is the consequence of hedge funds choosing to enter the database after good performance with earlier good returns being ...
- Hedge-Fund Benchmarks: Information Content and Biases
To estimate the magnitude of instant history bias, Fung and Hsieh. (2000b) ... Fung and Hsieh measured the instant history bias as the average difference ...