What do you think of Hedge funds?

The other day, I read an article on a magazine.
It singled out top 10 hedge fund managers in U.S..

Two of them, the investment philosophy sounds interesting.
One’s fund owns Sears and was compared to the one and only "Warren Buffet".
The other one’s fund requires a big percentage of fee, but no one is complaining. Its trading decision is based on mathematical formulated software
the founder developed.

What is your opinion on hedge fund? Can you shed some of your knowledge?

Thanks a bundle.