[wtmcc]

This article considers hedge funds in the aggregate, which seems to me to be a fallacy. It doesn’t consider variation within a category which we can usefully select against.

“Money in hedge funds is a bad investment” seems similar to saying “going to college is a bad investment,” when the value of a college degree is highly dependent on institution and major. CS at Stanford may be a fabulous investment, while Folklore/Mythology at U of Phoenix may not be.

[kevinpet]

The difference is that past performance is a good predictor of future results for college education.

[mhb]

So which fund will do well in the future?