One of the best explanations of HF performance. Emphasis mine.
“Crudely, there are three ways to make money as a hedge fund manager,” said one large multi-billion dollar asset manager.
“You can take advantage of trading technology, but few do. You can be more intelligent than others, but few are.
“Or you can have some specialised source of sustainable information. Unless that information is from fundamental analysis – and in Galleon’s case it did not all seem to be – then that’s a red flag for us.”