In theory since 2009, investing (buy & hold) should have worked for most folks investing in the markets. In reality, most Americans have been pulling their money (selling their investments). In fact, many quarters since 2009 there was record number of money pulled out of the markets. Yet, the markets have been going upwards since 2009. Why ? In contrast, prior to 2002, record number of investors were putting money INTO the markets. That's when theory of investing (buy & hold) was a reality. There are many websites (e.g. gullup) with more detailed stats of investors, hedge funds, funds money movement since the 80's. Some websites even breaks it down to whom are doing such via income levels, education levels, political beliefs (republicans vs democrats) and geography. Funny thing though, with all the heat real estate markets having been taking since 2007...most investors still views real estate markets as the best "long term investments" even though most can't afford to do such. Anyways, the government bailouts, wall street scandals, widespread foreclosures, unemployment issues will keep the typical "investor" on the sidelines or pulling out more money while only the rich are doing the true investing (buy & hold)...that answers the Why question above. The above are not my personal opinion, they are just a summary of facts I pulled from many websites that maintains investing stats.
I think they're starting "alternative mutual funds" (heavy into derivatives as a hedge) based upon the hints in the article. In addition, I know one particular IVY league guy (26 years old) that just started his own "alternative mutual fund" with help of a few veterans he knew (friends of his father) from the "hedge fund" business. http://www.fa-mag.com/news/are-alternative-mutual-funds-a-good-deal-12913.html
I read that and truthfully am not much the wiser. Usual sales blurb blah blah. However it may lead on to.......