> Well, that, but they also offer diversification. [...] > are often uncorrelated [...]

Do they really offer diversification and are they really uncorrelated? See http://universa.net/Universa_Spitznagel_SafeHaven_HedgeFunds...

I particularly like this quote as a summary:

> Hedge funds would appear to have lost whatever ability they may have once had to provide risk mitigation value (which, let’s face it, wasn’t very much). Hedge funds just don’t effectively hedge anything; worse yet, perhaps they have even lost sight of that very objective in the first place. They are without a purpose.