According to MarketWatch’s David Weidner If you’re the sort of investor who chases hedge funds, marking your calendar for the next disclosure of holdings from David Einhorn or John Paulson, you can quit reading. Almost nothing that follows is going to get through to you. You won’t be warned off by the facts: the reality of lackluster performance, the rigged advantages that average investors don’t enjoy, and the transparent hype.
Nothing matters when you’re dazzled by the bright lights and overwhelmed by the sound of your own greed. It’s what makes the industry a $2.25 trillion one. But the argument against following the hedgies is so common sense, so convincing, that any reasonable investor wouldn’t even consider idolizing these guys, much less putting their money next to theirs….