2. The asset management industry rarely delivers the alpha that it promises. Delivering alpha on a net of fees and costs basis consistently over many years is incredibly difficult. For example, hedge funds on average have underperformed on a net of fees basis in both US equities and bonds since 2000. Hedge fund performance looks attractive for the period of 1970 - 2013 (See Picture 2). However, one can argue that hedge funds were different in the 1980s and 1990s as the industry was smaller and more nimble. Recent hedge fund underperformance, coupled with steep typical 2% management and 20% performance fees and additional hidden costs that can be charged to fund investors, make investors more likely to ask questions.