That's a bit of a meme. Not entirely wrong. But the people who have hedge fund money know how to read the fine print about returns. The goal of hedge fund is t

That's a bit of a meme. Not entirely wrong. But the people who have hedge fund money know how to read the fine print about returns. The goal of hedge fund is to reduce volatility and/or to generate uncorrelated returns. Some people are ready to pay a premium for that (in the form of under-performance compared to an index). Hedge funds are more an alternative to fixed income than an alternative to equities, if you think about it.