hedge funds investors on average are large, "qualified", and sophisticated. the money's leaving because they've underperformed (they always do in big bull runs), not because endowments etc have gotten "more educated about personal finance".
I personally remember enough cases like Steven A Cohen and Galleon and the Gerson-Lehrman group[0], that I assign the probability "likely" to that claim, so if someone says "unlikely" I ask him for his reasoning because I might need to update my estimates. I was not trying to say it is wrong, just understand his reasoning.
[0] https://en.wikipedia.org/wiki/Gerson_Lehrman_Group#Controver...
Which, in reality, was the SEC and Preet Bharara trying to say that large investors aren't allowed to have meetings with the execs and investor relations people at the companies that they were large investors in, which doesn't make much sense and was knocked down by the courts.
There was a lot more to "reality" than you make it out to be. E.g. there's this clown https://en.wikipedia.org/wiki/Raj_Rajaratnam#Conviction_and_... and 13 of his buddies who were all convicted and who are doing time.
And don't forget about Stevie Cohen https://en.wikipedia.org/wiki/Steven_A._Cohen#Controversy who managed to skate personally but whose hedge fund pleaded guilty to criminal charges and agreed to a $1.8 billion settlement.