You are talking like any modern MBA or portfolio theory student. I hear the word "alpha" and I gag! Why would you need to pay someone 1 & 20 to do what swaps or other cheaper products could achieve? And that +2% is over years relative to the S&P 500. Any wonder why pension funds and endowments are so mismanaged...because of their short-term concern for "alpha", while paying idiots like Chanos a fortune. Your argument was identical to the one Whitney Tilson used when I originally posted that years ago. Cheers!
It might be unfortunate but trillions of dollars are managed this way... :-\