> 1. Buffett bet against aggregate performance of hedge funds as an investment vehicle. If he restricted his focus to the highest performing funds of the past 10 - 30 years, he would have lost handily.

I don't think this is a caveat. I think this is the point. You don't compare yourself to the literally one guy who won the lottery, you compare yourself to everybody that bought a lottery ticket.

> I say this because there is a tendency for people outside the industry to come away thinking hedge funds are a scam. Which...well, many are, to put it bluntly.

I don't think anybody is assuming every hedge fund on Earth is a scam from this any more than they think lottery tickets are a scam. As you mentioned yourself:

> Taken together, this means that Buffett's bet is a statement about the aggregate performance of the industry.

I apologize if I'm being presumptuous, but is this not so obvious that it can be assumed?