Mutual fund companies promote new funds with strong recent performance to attract investors. They often choose highly skewed securities during the initial phase, called incubation, to increase the chances of some funds outperforming. However, this strategy can mislead investors into thinking that past returns predict future success. The study shows that funds with skewed securities attract more money during incubation, but their performance drops after they are sold to the public. This suggests that using skewed securities during incubation can boost demand but may not indicate future success.