Hedge Fund Slump

But as it turns out, neither are even the so-called "experts," despite what they'd like us to believe. Hedge funds were down 3% for 2020 even before the virus hit America and destroyed the market. The most well-known index, the S&P 500, was down a staggering 8.27%. According to the Wall Street Journal, that was only a small portion of a decade-long pattern in which hedge funds underperformed the wider market.

Famous investment mogul Warren Buffet earned bragging rights when he asserted that money left in the market passively will do better overall than money handed to hedge fund managers, which was cruelly adding salt to the wound given the fees that fund managers demand. Not that all of this has stopped the $3 trillion hedge fund sector from expanding.