How smart do you have to be to work for a hedge fund?

[Beliavsky]

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@Data10

In my opinion, outperforming the market more often relates to luck than skill or intelligence.

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<p>This is clearly true over short time intervals, but it is an arguable statement when discussing 5-year or 10-year returns:
[What SAT Scores Say About Your Hedge Fund
By MARK HULBERT
New York Times
September 9, 2007](<a href=“http://www.nytimes.com/2007/09/09/business/yourmoney/09stra.html”>http://www.nytimes.com/2007/09/09/business/yourmoney/09stra.html&lt;/a&gt;)

IF investors want a performance edge in their hedge funds, they may want to do a little background research on the managers: look for those who attended colleges with relatively high SAT scores.</p>

<p>Funds run by such managers regularly posted higher returns, according to a study, “Investing in Talents: Manager Characteristics and Hedge Fund Performances,” which has been circulating since May as an academic working paper.

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