Apex Clearing Corp. All Mutual Funds: Data as of Jan 4th 2013, but is subject to change
Apex Clearing Corp. All Mutual Funds: Data as of Jan 4th 2013, but is subject to change
However, part of this increase can be due to the inclusion of new lucky funds. As a consequence, the standard approach does not provide guidance on the location of funds with differential performance in the tails of the cross-sectional alpha distribution. For instance, suppose that the number of funds with negative estimated alphas increases by 50 as γ passes from 0.05 to 0.15. If all these 50 funds are lucky, we would conclude that the few funds with negative performance are located in the extr