WHEN A NEW MANAGER IS AFTER THEY HAVE HAD A FEW SUCCESSFUL YEARS, A...

1. When a new manager is after they have had a few successful years, Appropriate added to the index, the at which point their entire return history is added to the database. This biases the data index administrator adds the towards firms that survive the first few manager’s entire return Inappropriateyears. history to the index. Survivorship bias: Since managers are free to stop reporting when they wish, they may do so when they have had periods of weak