[georgeecollins]

You have a point but that article is also a little misleading. It assumes every hedge fund manager has 100% of his wealth in the funds. To be fair the writer admits that he is just guessing but that is a high guess.

Also, the S&P had its best year in 16 years last year, so you would expect people to do well on their investments this year. The thing that Warren Buffer is very critical of is that hedge funds get a lot of fees even in years that they do really poorly. That sets them up to win big when the market does well.

There is an illusion, cultivated by instutional investors and the people ripping them off, that instutional investors are very savvy. It is not always true.