Thought provoking post. I understand that the graphs showing the relationship between the Information Ratio and Skill Ratio are meant to be viewed from a wholistic stand-point, however, the lower correlation for the outperformers could be explained by the type strategy each fund runs. An extreme example: if you have an outperforming long-only fund that has an investment horizon of say 5 years for any given trade/investment, and you decide to look at the returns on a very short term basis (for arguments sake - seconds or minutes) then clearly the Information Ratio will be very low and the Skill Ratio will be high. I guess I think it makes sense to potentially categorise the funds into strategy type to compare apples with apples.