I'm not so sure about how the article ends. According to the traditional "more risk, more reward" idea, it shouldn't at all be surprising that taking active ste

I'm not so sure about how the article ends. According to the traditional "more risk, more reward" idea, it shouldn't at all be surprising that taking active steps to reduce your portfolio's volatility results in lower average gains. If those non-linear hedge funds are really succeeding in reducing their customers' risk exposure while also reducing their performance by only 10 basis points, color me impressed. That's over an order of magnitude better than the hit I'm taking from the asset allocation strategy I use to limit risk on my short time horizon stuff.