In the penultimate article in our series on hedge fund performance measurement, we look at what the academic literature has to say about the capacity of high-performance funds to repeat their performance over time.
Top-ranking funds are very attractive. However one question is fundamental: do winners repeat? This question brings up a primordial aspect of the performance measurement process - performance persistence - which I touched on in Hedge Funds Review March 2005.
While a measure of performan