The Natural Selection theory of Charles Darwin is based upon a few concepts: Species naturallyreproduce in overabundance, with genetic variation and mutations that are generally harmful, butsometimes beneficial. The more adaptable offspring have higher survival rates than the lessadaptable...

We examine the performance of the off-shore hedge fund industry over the period 1989-1995 using a database that includes both defunct and currently operating funds. The industry is characterized by high attrition rates of funds, low covariance with the U.S. stock market, evidence consistent with...