Why is fund of funds have a lower survivorship bias compared to hedge funds, should not it have the same bias since its considered a group of hedge funds?
I think the key thing here is that FoF’s performance has suffered from failing HFs that it has held, so the return is fully reflective of the FoF’s performance, however, when you look at a specific hedge fund you are only looking at it because it has survived, so there is bias vs the universe of hedge funds.