This is an interesting article from MoneyWatch and Larry Swedroe with some great lessons incorporated into it.
We recently took a look at some of the lessons the markets taught us last year. Now, we’ll dive into the remainder of the lessons, which help provide the right way to look at the returns we experienced (or possibly missed out on).
One of the major lessons we learned in 2012 was one we learn almost every year. Hedge funds should be avoided as investments. In 2012, the HFRX Global Hedge Fund Index returned 3.5 percent, and the index returned just 1.7 percent over the past 10 years. The table below sums up the evidence pretty well.