Is that the case? I had been under the impression hedge funds primsrily serve as a risk mitigating tool. (hence the term hedge fund) Their aim is not to make as much money as possible, but to protect their clients from the risk of losing everything. They need to make more than average savings accounts, but that's about it.

Perhaps a better argument would be "making index investors look like fools" or possibly VCs, or...

Am I wrong here?