My problem with articles like these can be seen in the title. The best way to get to an answer of the question I believe he thinks he is asking (Why do people

My problem with articles like these can be seen in the title. The best way to get to an answer of the question I believe he thinks he is asking (Why do people continue to give money to hedge funds despite evidence that on average, you are better off with the 60-40 stock/bond mix?) would be to present what hedge funds are, present the alternatives, and delve into the reasons. Now, he does most of those things in the piece. The problem is that his original question was already biased - how do they "get away with it." He assumes that there is something going on that blinds all who invest in hedge funds, when in reality, the truth is much closer to this: Those who invest in hedge funds think they've found the one that outperforms average. TL;DR - hedge funds are for the more risk-tolerant (I agree with his issues on pensions and endowments being invested in riskier vehicles, but that's a separate issue from the question he posed).