Ok, so this letter isn't nearly as uncomfortable to read as the one that has to go out to those who lost $2 billion when Texas Pacific Group led an investment in now JP Morgan assimilated Washington Mutual but it is still a good read.  Here's the NYTimes DealBook story on it.

It is a letter to shareholders in the TPG-Axon fund covering recent market "activity."

So for 2% mgmt fee plus 20% of any profit, how'd we do?  It can all be summed up in one word, according to fund manager Dinakar Singh – "abysmal."  Here's an article covering the launch of the fund a short four years ago with much fanfare and hype.

Mr. Market takes no prisoners and no matter how smart you are, how much data you have, or how confident you are in you abilities, he will get the best of you.  Just ask Mr. Singh.

Where are the opportunities according to Mr. Singh going forward?  Distressed mortgages, Chinese stocks and transportation. 

Are hedge funds good investments?  Well, think about the word "hedge" for a minute.  If it were a true "hedge" then wouldn't it have protected these investors against recent market craziness?

No thanks, I'll stick to index funds