Commentary: Hedge funds are often overhyped and underperforming

MarketWatch – 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.

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