The article is bs and reeks of ass-covering (and lots of other folks agree). If S&P 500 was such a bad benchmark, why did he bet $320k on being able to beat it? The other points (interest rates etc) amount to "We couldn't predict the future", which would normally be fine, but not when you are charging 2 & 20 to do so.
Edit: a better response - http://msantoli.tumblr.com/post/110804679383/cry-me-a-river-...