Cyclical drags on hedge funds could lift, but smooth returns are down to manager skill and the right mix of strategies, Aon Hewitt has argued. Despite hedge funds’ disappointing performance since the financial crisis, investors should keep them in their portfolios—but only if they can invest better. According to Aon Hewitt, some of the temporary and cyclical drags on hedge funds, such as artificially dampened volatility, are expected to lift.  Asset classes that have been highly correlated since 2008, largely due to central banks’ monetary policies, are likely to move more independently, the consulting firm said. “This makes us...