To be fair, the HF in question was a fund of funds, so the fees amounted to 5% at best, probably 6%+ at worst - hard to see most HFs beating the market by that range. Most HFs charge 2 and 20 (2% of AUM and 20% of gains), so the investors were getting charged fees squared. A bit odd these people would think this was ok as they all had to be qualified investors (250k+ salary or 1M in assets).
When the PM took on Buffett, it was kinda hysterical, we wondered if he was doing it for the marketing (but it’s bad, right?) or because he truly believed in himself. Very odd.