For comparison, consider the case of people who get their jobs via nepotism. The people who are hired for nepotism are seldom concerned with the fact that they were chosen because of who their parents were. In many cases these people are reasonably qualified and do just fine in spite of the fact that they were given the job because of their family's status.
When there is a preponderance of talent and success is hard to quantify precisely, choosing the best means choosing between a number of comparably good alternatives (to within the large uncertainty of the measurement). In certain cases there are very meritocratic scenarios where I think your statement holds, but when there is a surplus of talent for a role and quantifying success is very imprecise, I'm not sure if meritocracy makes sense. Given that many hedge funds are basically glorified ETFs that average to the market, I'm not if there is much difference between reasonably qualified candidates for these jobs.