It's been known for a while that index funds usually do better than managed funds (including hedge funds). So, this isn't really news (though I don't consider V

It's been known for a while that index funds usually do better than managed funds (including hedge funds). So, this isn't really news (though I don't consider Vox to be a news source anyway). Traditionally, hedge funds were contra funds used to hedge against market decline. So, in that sense, in a rising market such as this, a hedge fund should be performing more poorly. However, modernly, the term "hedge fund" includes any sort of privately managed liquid asset fund. I don't know why they perform worse, probably due to increased risk taken to increase returns over the competition.