Alpha should be risk adjusted (a la Sharpe/Sortino), but broadly your answer is correct. Current Fed policies punish those who don’t take risk, by design. Hedge funds (in theory - ahem) are structured to maximize risk adjusted profits. But if there’s no risk, because the Fed has made it so, then there is nothing for hedge funds to do but accept the new casino world for what it is: play along and hope that the Fed can control whatever comes our way. It’s a fools errand to hedge...until it isn’t.