Rubes

I still don't know why hedge funds are invested in by anyone.

Investing, whether for a huge pension fund or for an individual is really not hard: stock index fund (or 2 if some international is desired) for a fraction dependent on risk/reward--for pension funds, say 60%, for individuals start at 80-90% when younger and taper down to maybe 40-50% at retirement--and bond index fund for the rest.  Pension funds may also want to consider adding a broad REIT (all US, again, maybe a Global too), individuals may buy a house (though adding some REIT could be fine as well).

And that covers the vast majority of investors: people and companies saving for retirement [funds].  Anyone who wants to get more in depth, to try and beat the market, can, but even for them, hedge funds are a bad bet.  Those people should be doing their own research and picking individual investments.  Going to hedge funds to try and beat the market is a sucker's bet.