I am not a finance expert. My venture capital activities are really the first time I am operating in the financial field. However, a good deal of my friends have gone into finance (mostly investment banking) after school, and a good percentage of those are now on the less traditional side of finance now; namely, at hedge funds.
As a result, I hear quite a bit about hedge fund performance claims. Among friends, there has been long standing discussion about how if each of these claims are true and accurate, then either these guys are smarter and richer than anyone else we know, or some of these number are inflated.
Well, just came across this article discussing how the latter explanation may just be the reason.