There are many biases in peer groups, some of which can be controlled. But one obscure bias just won’t go away, and it’s raising havoc with investment manager evaluations. It oozes out from compromises that all peer group providers must make, and invades evaluators’ judgment, unbeknownst to its unwitting victims. This perilouse perpertrator is called classification bias. Ignore this bias at your own peril.

Author : Ronald J. Surz, PPCA