Hedge fund managers suck at making money (for you)

The Financial Times analyzed the stock picks of the presenters at this week's Ira Sohn Investment conference in NYC and found that, on average, following a hedge fund manager was a much worse bet than buying passive index funds (though a couple hedgies did do pretty well last year, they were dragged down by the spectacularly wrong advice from the majority):

But a Financial Times analysis of last year's tips shows decidedly mixed results. An investor who followed every top idea from the 12 speakers last year would have made 19 per cent, less than the 22 per cent gain available from a passive index fund tracking the US stock market.
Many of the ideas have proved woefully miscued, including some from the most high-profile managers who will return to the stage on Wednesday: David Einhorn of Greenlight Capital and Bill Ackman of Pershing Square.

Tips From Wall Street Hedge Fund Gurus Fail to Reward Faithful