“Over a ten-year period commencing on January 1, 2008, and ending on December 31, 2017, the S & P 500 will outperform a portfolio of funds of hedge funds, when performance is measured on a basis net of fees, costs and expenses.”
PREDICTOR
Warren Buffett
One thing that he doesn't make clear: hedge fund fees are 2% annual management fee PLUS 20% of any upside (very similar to VC's)
After fees, index funds often perform better than hedge funds: http://www.nytimes.com/2007/03/04/business/yourmoney/04stra....
Also - relevant is this long bet: http://longbets.org/362/
“Over a ten-year period commencing on January 1, 2008, and ending on December 31, 2017, the S & P 500 will outperform a portfolio of funds of hedge funds, when performance is measured on a basis net of fees, costs and expenses.” PREDICTOR Warren Buffett