RT Journal Article SR Electronic T1 An Alternative Future JF The Journal of Portfolio Management FD Institutional Investor Journals SP 94 OP 103 DO 10.3905/jpm.2004.442627 VO 30 IS 5 A1 Clifford S Asness YR 2004 UL https://pm-research.com/content/30/5/94.abstract AB Hedge funds are supposed to make money all the time, and when they fail at this, their investors redeem and go to someone else who has recently been making money. Every three or four years they deliver a one in a hundred-year flood. They are generally unregulated and generally do not tell us what they do. Yet inflows to hedge funds from institutions and others have been off the charts for the last few years. Despite some definite dark sides to the industry that need to be recognized and then ameliorated, hedge funds are central to the future of investment management. A combination of hedge funds and traditional index funds has distinct advantages over typical traditional active management.