Special to AllAboutAlpha.com by: Dr. Lars Jaeger, Partner, Partners Group…

For a long time, many investors have regarded hedge funds as an investment class that generates absolute returns by means of managers’ sophistication in extracting inefficiencies from the complexity of the global capital markets.  However, the current financial crisis has forced investors to reconsider this belief.  Even before 2008, the hedge fund battlefield had been littered with the bodies of secretive funds such as LTCM, Quantum, Tiger, Niederhoffer, and Beacon Hill, all of which failed spectacularly in comparably much less severe market environments. More…