Nice work by WealthManagement looking at the usual misinformation about hedge funds. Its a shame its in (horrific) slide show format.
Let me save you 10 clicks or so:
10 Hedge Fund Myths
1. Hedge funds are absolute-return vehicles.
2. Hedge funds are nimble market-timers.
3. Shorting generates alpha.
4. Today’s stars will be tomorrow’s also.
5. Hedge funds shine in volatile markets.
6. Replication doesn’t work.
7. Only net-of-fee returns matter.
8. Stock selection drives performance.
9. Hedge funds are long value stocks and short growth.
10. Fee structure of 2/20 aligns incentives.
These are all throughly proven myths about the “average” hedge fund. No, they don’t apply to all funds, but certainly to many.
If you want a deeper dive into criticism of hedge funds, I strongly suggest Simon Lack’s book, The Hedge Fund Mirage: The Illusion of Big Money and Why It’s Too Good to Be True.