“What do you think of hedge funds?”
A 4th possible answer would be along the lines of:
"they aren't that much different than other collective investment vehicles (such as mutual funds), the returns that they advertise tend to be materially better than the performance that their clients achieve from them. Some explanation for this is offered by various behavioural biases that have been well documented over the years. Where they differ is that the "returns-advertised / performance-achieved" gap comes packaged inside of a higher-fee product."