[jaredeklee13]

Can't argue with the data - agreed on the average. Not to say there aren't brilliant fund managers and pensions that are able to identify them.

But how does it follow that regulations should restrict a pension's choices?

[blacksqr]

I'm not advocating any particular policy. I'm still trying to perceive any chain of logic that leads to the conclusion that hedge funds blowing up is good for pension plans.

The point I was trying to make above is that better risk management by banks that lend to hedge funds would be actually beneficial to pension funds, as opposed to letting hedge funds blow up randomly, whose value is as yet not established.