obviously they DO work then, since most indices are down 40% on the year.

Hedgefunds are designed to outperform benchmark indices. Outperforming by 23% is phenomenal.

By the logic of the poster, a year where the SP500 returned 50% and a fund returned 10% would be proof that hedge funds DO work. That fund manager would be immediately fired.

Hedge funds have outperformed for the last 10 years. Taking a one year performance that loses money doesn't mean anything.