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Beverly Chandler, Opalesque London: AIMA has published a 'comprehensive rebuttal’ of Simon Lack’s book, The Hedge Fund Mirage: The Illusion of Big Money and Why It’s Too Good to be True. AIMA’s paper, "Methodological, mathematical and factual errors in 'The Hedge Fund Mirage’ was written in conjunction with AIMA’s Research Committee, which features leading academics and analysts.

AIMA CEO Andrew Baker said: "Many of us in the industry looked at the arguments in the book with initial interest, and then growing scepticism. Many of the most sensational claims appeared not to be backed up by any figures. Where there were figures, the methodology was flawed. We noticed that no-one praising the book appeared to have actually checked the numbers behind it. We began to wonder if 'The Hedge Fund Mirage’ was itself an illusion,"

Lack’s book, subtitled The dismal truth about hedge funds and how investors can get a greater share of the profits claimed that if all the money that's ever been invested in hedge funds had been in treasury bills, the results would have been twice as good.

For its part, AIMA pointed to the following errors in 'The Hedge Fund Mirage’:

• The main claim in the book, that U.S. Treasury bills have outperformed h......................

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