Yes, do sell "Divergence is the New Convergence" story now that C. no longer works. What if the science behing spread trading was only valid as long as C. worked...?
Equity Market Neutral Hedge Funds continue to make money. http://www.hedgefundsreview.com/hed...e-funds-continue-positive-performance-october
"What if the science behing spread trading was only valid as long as C. worked...?" Easy - look at any weighted yield curve spread trade over the past few years ( post 2006); unbelievably great trend trade (taken on divergence in the spread).