Ted Seides, who conceded a bet to Warren Buffett that passive investing can beat active money managers, has soured on hedge funds that use long/short strategies. Seides, managing partner at Hidden Brook Investments, said the funds are struggling to profit from shorting stocks -- betting that their price will fall. He was also skeptical of managers who invest in distressed debt, saying the strategy “will never be rich again,” because so many investors are prepared to profit from bonds selling off.