Definition of 'Instant History Bias'
An inaccuracy in the appearance of investment fund returns that occurs when only new, successful funds report their numbers while new, unsuccessful funds close and their poor returns aren't factored into an investment manager's or investment type's overall performance record.
Instant history bias, which especially occurs in hedge funds, is also called "backfill bias" because hedge fund managers may choose not report fund performance to a database from the fund's inception, but instead choose to "backfill" the database later when they have established a track record of success with a fund.
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