What a wonderfully self-serving explanation. Here&#x27;s an alternative one: hedge fund managers are shutting down their funds because people are waking up to the fact that hedge funds are a terrible investment. After the managers take their 2-and-20, hedge funds have lagged the market every year, in both market ups and downs. Funds are trying to slow the rush to the exits by slashing fees (<a href="http:&#x2F;&#x2F;www.ft.com&#x2F;intl&#x2F;cms&#x2F;s&#x2F;0&#x2F;693d9b74-73f3-11e5-bdb1-e6e4767162cc.html" rel="nofollow">http:&#x2F;&#x2F;www.ft.com&#x2F;intl&#x2F;cms&#x2F;s&#x2F;0&#x2F;693d9b74-73f3-11e5-bdb1-e6e47...</a>) to keep more people from going the way of CalPERS, but I don&#x27;t think it&#x27;s going to work. There&#x27;s just too much freely-available evidence that hedge funds aren&#x27;t worth the fees for what you get. Blaming the government as they turn off the lights is a handy way to get at least something positive out of it though.