I use a Bayesian modeling approach for performance analysis, which permits direct comparison of strategies with different history lengths.

However my comment was really referencing the fact that the hedge funds able to charge atypically high fees (e.g. incentive fees of 30%+) tend to be those that have a long run of stellar returns, which the market reads as a sustainable edge -- a.k.a. skill. It's unusual to see newer funds commanding a premium out of the gate, even with a strong initial track record.

Successful managers may also increase fees as a way of growing revenue while constraining AUM growth, since higher assets under management tend to make it more difficult to generate alpha.