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This is throwing any efficient-market hypothesis out the window. Msybe this would work for a year, but why would anyone invest in fund B if it is a consistent loser. If you can figure out a way to slowly buy an asset and then quickly buy more of it and make both strategies profitable at all, then you're onto something huge. Almost as huge as Ren Tech

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It assumes an efficient-market. The money is coming at the expense of fund B. It doesn't need to be a consistent loser, it just needs to make less than it otherwise would on average.

People invest in funds that under perform the market all the time. That describes the majority of the finance industry.

I mean, hedge funds on average ARE consistent losers. People invest in B through marketing and proximity to A.

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