If the last two months have taught us anything (other than that Fed is panicking) it's that "hedge" funds sometimes aren't so good at hedging. 

In fact, between i) the outright breakdown of the historical relationships between asset classes (volatilities and correlations) that are used to construct optimal "risk-parity" funds and ii) a number of "superstar"-specific disasters such as the Valeant debacle, anyone paying 2 and 20 might want to do a sanity check because as the recent performance of Pershing Square, Greenlight, and Paulson (who apparently decided that the best way to allocate capital was to spread it among Puerto Rico and Greece) seem to show, these leverage-assisted, beta train-riding, carried interest tax loophole-exploiting fund managers are ill-prepared to protect capital in the event of a real downturn.