The hardest aspect about hedge fund properties is to understand that they present an entirely distinct category of financial instruments, therefore, deploying a traditional methodology commonly used for stocks and bonds, will lead to the unexpected and most questionable results.
Biases in fund databases present another serious problem originated from the following reasons. First, databases include only a part of the whole hedge find population that varies from 30 percent to 50 percent. Second, some biases are derived from the peculiar terms of counting hedge funds and their respective returns.
