[Verse 1]
Johnny starts a hedge fund tracking system
Collects the data, builds his database
But funds that crumble disappear like phantoms
While winners linger, painting false displays
The graveyard empties, tombstones fade to nothing
Performance soars beyond reality
[Chorus]
Survivorship bias, the losers vanish quick
Backfill bias, rewriting history's trick
Selection bias, cherry-picked parade
Three distortions in the index masquerade
S-B-S, remember these
Hedge fund metrics bend with such deceitful ease
[Verse 2]
Maria launches funds in January's frost
But waits till June to join the benchmark crew
She backfills months of gains, the early cost
Erased like magic, losses never grew
Historical returns get airbrushed clean
Performance gleams where struggle should be seen
[Chorus]
Survivorship bias, the losers vanish quick
Backfill bias, rewriting history's trick
Selection bias, cherry-picked parade
Three distortions in the index masquerade
S-B-S, remember these
Hedge fund metrics bend with such deceitful ease
[Bridge]
Index builders curate their collection
Handpick darlings, reject the broken dreams
What appears as neutral reflection
Hides beneath these calculating schemes
[Verse 3]
Hedge fund graveyards never tell their tales
Spectacular explosions disappear
While cherry-picked survivors spin their sales
The index climbs through manufactured cheer
Analysts must pierce this veil of smoke
Question every gleaming benchmark stroke
[Chorus]
Survivorship bias, the losers vanish quick
Backfill bias, rewriting history's trick
Selection bias, cherry-picked parade
Three distortions in the index masquerade
S-B-S, remember these
Hedge fund metrics bend with such deceitful ease
[Outro]
When studying returns, investigate the source
Three biases corrupt the data's course