Benzinga – Several publications try to rank hedge funds based on their one year or three year performance. These criteria aren’t sufficient to determine which hedge funds truly deserve to have the top rankings. They employ some filters to eliminate outlier hedge funds that don’t really belong to the list. For instance, funds with less than a couple of hundreds of millions of dollars are excluded.
Only hedge fund managers with stellar reputations can amass huge funds, so this criterion seems to weed out some “lucky” hedge funds. Another criterion is at least a three year track record that is reported to hedge fund databases. This seems like a good idea, but the problem with this criterion is that it also excludes several successful hedge funds that don’t have any desire to gather more funds or to garner any interest.
