If there's any purpose in hedge funds as a structure it's that they provide liquidity for the market. So it's in everyone's best interest to let them do price discovery against each other.
I do think there are some firms that have the skill to out-perform long term, but then the average is dragged down by ones like the subject of this article.
As for the strategy, that's the idea but all of them market themselves on the returns first and foremost.