From a due diligence report on Galleon (excerpted in the FT), here are the three ways to make money with hedge funds. It’s sort of amusing, in a bleakly comedic kind of way — especially the first paragraph:
“You can take advantage of trading technology, but few do. You can be more intelligent than others, but few are.
you can have some specialised source of sustainable information. Unless
that information is from fundamental analysis – and in Galleon’s case
it did not all seem to be – then that’s a red flag for us.”