2) Any of Renaissance's funds are not nearly as scalable as a passive index fund
3) As a hedge fund will still take a big chunk out of returns as fees
In some alternate HN that existed 10 years ago someone posted "4 letters: LTCM" :)
the article addresses hedge funds near the end.
You can't just invest in a hedge fund, there are some crazy requirements. As an individual investor you have to make $200,000 for at least two years straight.