More bad news for hedge fund returns, according to this NYT piece. A standard 60% equity/40% bond portfolio returned 90% over the last decade, compared with 17% after fees for a common hedge fund index.
The author finds some people just seem to want to pay higher fees for lack of transparency and hints about secret rocket science under the hood. People - and also pension funds. Two-thirds of the industry is now institutional money. But how long can that go on, if performance is so bad on average?