The World's Smartest Investors Have Failed

Investors started getting excited about hedge funds in the 1990s, when people like George Soros and Steve Cohen were earning returns of 30% or more, year after year, crushing the market. More funds opened, and their marketing pitch went something like this: We have the best investors in the world, and their returns are not correlated to the rest of the market. We will earn you so much money that we deserve the absurd fees we're going to charge you for it.