This episode examines the history and impact of hedge funds, starting with their founder Alfred Winslow Jones. It contrasts Jones' unconventional background with the more traditional path of later successful hedge fund manager Clifford Asness, highlighting the key features of the hedge fund model: performance fees, regulatory flexibility, hedging, and leverage. The text then explores the immense wealth generated by hedge fund managers, their varied backgrounds and philanthropic activities, and the ongoing debate about their role in market efficiency and stability, culminating in a discussion of the 2007-2009 financial crisis and its implications. Finally, two appendices present evidence supporting the argument that Julian Robertson and his protégés consistently outperformed the market, demonstrating skill rather than luck.