If the fund is really good, they take 2% of the capital and 20% of the profits... (Actually if the fund is really good it's closed to outside investors, so it doesn't really matter.) But of course if a fund is really good it's not just a portfolio of 20 hedge-fund darlings rebalanced quarterly.

I don't know how do they select the 20 names from hedge fund filings (looking only at their long positions, as they don't disclose short positions), but it seems that diversification is not one of the criteria. Virtually all of them are tech (IT/Telecom).

The 0-20% short (using inverse ETFs! [1]) is inactive, so no hedge at all currently on this overexposed portfolio. If (when) there is a large correction it may not be enough to ensure the loses are lower than for the market even assuming that they do it in time (surely it worked well in the backtests).

But hey, it's just 1% and runs (only) on your iPhone!

[1] They track the inverse performance well each day but can diverge over longer periods and have other risks that make them not-so-good as hedges. But anyway is just 20% of the long exposure...