Why Investment Performance Is a Distraction

[corydorus]

I play with XIRR measure often. One thing to be careful is when fund first started, they can play with relative small size of funding. The performance can be manipulated by having more funds introduced for different markets, take higher risk on each of them or with low cost structure. When one of them do well, it is then widely marketed that the fund has been doing consistently well for many years with strong performance. And right after most retailers steps in, within a few years, the performance dropped.