Excellent analysis of an under-discussed topic. I often speak with sophisticated institutions that tout the success of their alternative investments, sharing anecdotal success stories and consultant-provided charts. However, aggregate data reveals this success is often a mirage, as their investment professionals fail to critically evaluate their approach and benchmarks.

Despite their advanced tools and expertise, these institutions fall prey to the same mental biases as the average neighbor who brags about stock market wins but omits their losses.