A new paper from the University of Virginia’s Darden School of Business, titled “Hedge Fund Alpha: Cycle or Sunset?,” has found that risk-adjusted excess returns for hedge funds have averaged -0.8% over the last 10 years. It marked a “strong decline” from the 15-year period preceding the crisis, during which the average hedge fund manager was able to add 3.4% in net risk-adjusted returns. Author Rodney Sullivan, executive director of Darden’s Richard A. Mayo Center for Asset Management and former vice president of AQR Capital Management, repeated the analysis by focusing just on equity he...