It’s really not complicated. Most hedge funds are brilliant vehicles designed to make their managers rich. That doesn’t mean they’re doing anything illegal, or maybe even unethical. It’s capitalism. It just means they’re generally a terrible investment, like a new car or a $30,000 handbag. Only with hedge funds, you don’t even get the car or the bag.
This has been in plain sight for decades. The only mystery us why so many people, and particularly nominally savvy investors, continue to throw their money away.
My theory is that there is corruption involved.