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I mean, most of them underperform S&P, at least after fees.

I think on average they match a typical 60/40 portfolio on a risk adjusted basis. The goal is less to out perform long term and more to avoid big downturns (hence "hedge").

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.

Rentech surely exists but you can't become their LP, which allows the median hedge fund to exist, yes.

As for the strategy, that's the idea but all of them market themselves on the returns first and foremost.

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