[jteo]

2 words: Renaissance Technologies

http://en.wikipedia.org/wiki/Renaissance_Technologies

[jedc]

Agree, but:

1) They're a huge, huge outlier

2) Any of Renaissance's funds are not nearly as scalable as a passive index fund

3) As a hedge fund will still take a big chunk out of returns as fees

[ladyada]

In some alternate HN that existed 10 years ago someone posted "4 letters: LTCM" :)

[dschobel]

the article addresses hedge funds near the end.

[rorrr]

You can't just invest in a hedge fund, there are some crazy requirements. As an individual investor you have to make $200,000 for at least two years straight.