Hedge Fund Belly Up; Lesson?

From a New York Times article yesterday:

“Marketing materials for Bayou describe Mr. Israel, 47, as a “third-generation trader” who has been trading since 1978. His was a short-term strategy in which he would rarely keep positions for more than three days. He was satisfied eking out small gains rather than making big, directional bets on sectors or industry groups. What Bayou does best, a recent investor note said, “is hit singles on a regular basis.”

A hedge fund that “hits singles” goes bust? Surprise? No. For whatever reason many people think they are playing it safe by trying to get the so-called small consistent profits. Unless you are Jim Simons or Toby Crabel, great success in the “singles” game seems like a mirage.