I guess it depends on whether we think the underlying ability is a skill with long-term, differentiated levels. If so, even after factoring out reversion, we c

I guess it depends on whether we think the underlying ability is a skill with long-term, differentiated levels. If so, even after factoring out reversion, we could still find that there is a consistent ranking. For managed mutual funds, I think it's been studied that there is no ability (source: Boglehead books). So, unless things radically change, there is no signal in the noise to be found -- the rankings aren't more stable than random. I have no idea for VC funds.