Don't you mean 100% of all hedge funds could drop their money in index funds and get better results? That's the way I interpreted the outcome of the Buffet bet.
That'd be true if all hedge funds were actually trying to just beat the S&P. The vast majority, however, aren't trying to do that all; they're trying to create different risk/return profiles than you get by just indexing large-cap US companies.
There are black swan funds like Renaissance Technologies that routinely beat the averages by 30 or more percent, year after year. You can count the number of hedge funds that do that on one hand, however.
