In 2012, hedge funds rose an average of 3% compared to 13.4% for the unmanaged S&P 500. Worse, over the past decade a portfolio of 60% stocks and 40% sovereign bonds returned 90%, while hedge funds eked out a measly 17% gain. While some hedge funds do extraordinarily well, that’s inevitable with 8,000 funds! But with over $2 trillion under management, the systematic big wins of the 90s are history.