Its not just hedge funds. The same could be said for ALL active investment managers (and even many "index" funds). This has been well know for decades[1]. Of c

Its not just hedge funds. The same could be said for ALL active investment managers (and even many "index" funds). This has been well know for decades[1]. Of course people who manage their own money do even worse[2]! Luckily we have index funds and some of them are well managed (i.e. deliver what they say at the lowest possible cost). [1] http://www.stanford.edu/~wfsharpe/art/active/active.htm http://www.stanford.edu/~wfsharpe/art/active/active.htm [2] http://www.traderslaboratory.com/forums/attachments/30/26024-what-new-trader-needs-know-about-individual_investor_performance_final.pdf http://www.traderslaboratory.com/forums/attachments/30/26024...