I recently read an article by a Hedge Fund manager who seemed overly confident in his decision to be buying up certain types of bonds that have almost a 'guaranteed rate of return'. Yes, this trader has done exceptional in this mess, but a there's a few things I had to shake my head about. He claims to not to benchmark his returns but instead just makes money.

Most mutual funds today, for example, benchmark to a Lipper Fund Index of comparable holdings. Benchmarking a Small Cap fund...