Then why did he bet that hedge funds would beat the market? He should have bet on a different metric. Also, we pay the much higher fees of a hedge fund for inferior returns. It’s not because a hedge fund is lower risk. They are even more volatile than the market. This guy is an idiot.
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So hedge fund managers are inferior to buying an index fund and forget about it. The industry is just a way to milk the people who have some money.
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Hedge funds have to operate at scale. They are able to do certain things and access certain types of investments individuals can’t access, but they also have limitations due to their scale. I believe the takeaway from this thing has been, just invest in tracker funds, and I think that misses the nuances. It discourages people from doing anything creative with their investments. Reality is that individual investors can do things that hedge funds cannot, and can optimize around things like tax advantages and government protections for homeowners etc.
Their goal is to earn that commission. We all know that without even having to read that article 
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He should have bet on a different metric => World known secret, hedge fund managers focus is to maximize their revenue. That is why WB confident to bet against them. They do not like to publish that ! If no challenger, then the image is damaged too.
One of their biggest customers are public pension funds, and their lack of performance is going to cause taxes to increase.