A Warning Shot for Hedge Funds

A California teacher and her charges Photograph by Randall Benton/Sacramento Bee/MCT via Getty Images

The struggles of hedge funds to keep pace with simpler, cheaper market investments have been fun to watch for years. The “smart money” industry recently posted its worst first-quarter results since 2008, part of a running trend in which it has trailed the Standard & Poor’s 500-stock index in rising times and failed to deliver significant improvements during negative stretches.

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