Tell me again why anyone would make use of a hedge fund?
Today's WSJ has an article indicating the average college endowment fund returned minus (that's a negative) 0.3% in the 12 months ending June 2012, badly trailing the returns posted by both equities and fixed income.
The same endowment funds returned an average of 1.1% annually over the last five years and 6.2% over the last decade, net of fees.
Basically, the article goes on to say that the average endowment fund holds 15% in U.S. equities versus 54% in alternatives. The largest endowment funds those with more than $1Billion in assets, posted the best returns, gaining 0.8% in fiscal 2012 and an average of 7.6% annually over the past 10 years. The smaller endowment funds with $51 million to $100 million in assets lost 1% last year and returned an average of 5.7% annually over the last 10 years.
My interpretation - the average Boglehead could vastly outperform those who proclaim themselves to be "investment experts".