The social function of hedge funds is to provide the expected returns for their given investor (examples: uncorrelated returns to the S&P500, downside protectio

The social function of hedge funds is to provide the expected returns for their given investor (examples: uncorrelated returns to the S&P500, downside protection, returns generated by non-stock/bond investments, et al) - the same as any investment vehicle. Those returns should then be accrued to the investors in a given fund, thereby enabling things like pensions as well as non-retirement gains. Now, I don't believe this is what they provide, but I'm trying to answer your question.