There's a lot of friction. You won't switch based on one year, which would just leave you chasing last year's lucky winner (who will likely revert to the median next year). It takes a long time to realize that your hedge fund is a loser.
The whole point of a hedge fund is for you to let someone else do the worrying. So the market is decidedly inefficient.
The whole point of a hedge fund is for you to let someone else do the worrying. So the market is decidedly inefficient.