They've got major problems with risk management and/or...

They've got major problems with risk management and/or correlation between shares. I don't care what they say, this issue has been too consistent over a long period.

That is a huge problem for a long/short fund. I think when there is such a lack of confidence in their stock and market picking ability, they should try to work on basic pair trading instead of their current failed strategies. They only need to pick a relative winner between two companies, eg long Magellan vs short Perpetual would have been a great trade over the last year. A2M vs BAL another that comes to mind.