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How big are the external funds? If they are large enough, it wouldn't be hard (quantitatively) to shave a percent or two off of their returns in bad medallion years to keep the winning streak alive.

The inflows inspired by the mystique shrouding medallion alone could make this easy

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There are strict regulatory obligations to the outside investors that would make that transfer illegal.

illegal, sure. But let's say there are some very bad actors involved... would it be possible? People have been known to do illegal things in finance and have tried to cover their tracks in the past.

Nope. This used to be quite common in the 80s (you would run a public fund, and allocate losing positions to pension funds) but doesn't happen today.

The medallion fund had 20 years of performance before the other funds existed.

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