Hedge funds are about to go on a hiring spree for a new kind of talent

Eduardo Munoz/Reuters At an investor conference in December, Cliffwater managing director Chris Solarz bluntly declared that “90 percent of hedge funds are not worth their fees.” The data supports Solarz. According to Hedge Fund Research, with the S&P 500 up almost 8 percent through Nov. 30th hedge funds were up just 4.6 percent after fees.[1] Hedge fund managers are good at picking stocks and identifying esoteric correlation trades. They are less good at constructing sustainable portfolios,...