The hedge fund business is tough.  Guess it’s time to diversify into mutual fund management!  AQR Capital lowers its sights.  (WSJ.com)

The real world doesn’t move in a smooth path, why should your manager’s investment returns?  (Economist.com)

A solution in search of a problem.  True actively managed ETFs are here.   (Morningstar.com)

What does a hedge fund “best ideas” portfolio look like today?  (World Beta)

The “tech bellwethers” look cheap.  (Bespoke)

A little known, but interesting, sentiment indicator is at a historic low.  (Trader’s Narrative)

“Excess cash” tends to lead to risky investments and higher returns.  (CXO Advisory Group)

Research into the equity performance of firms emerging from bankruptcy.  (Empirical Finance Research Blog)

Good bank (Citigroup) meet bad bank (Citi Holdings).  (CNNMoney.com, Big Picture)

No wonder John Thain “waived” a bonus for the year.  Bank of America (BAC) (and the Treasury) were the only ones who thought Merrill Lynch was a good deal.  (WSJ.com, Deal Journal, FT Alphaville, Marketwatch.com)

Failing upwards.  B of A gets bailed out (again).  (naked capitalism, Baseline Scenario, Big Picture)

Just what are “troubled assets“?  (Clusterstock)

Buying insurance on a U.S. sovereign default is “stupid.”  (Don Fishback)

Will the stimulus package pay, in part, for itself?  (Real Time Economics)

“Deflation, in short, is here…The great question, of course: How long will it last?”  (Capital Spectator)

Another sign that trade has dropped off the table.  (Calculated Risk)

Oil is essentially free at $34 a barrel .  (Gregor.us via market folly)

Just how important is Steve Jobs to the success of Apple (AAPL)?  (NYTimes.com, Economist.com)

“The fact is, in the eyes of the media, Apple is the corporate equivalent of Barack Obama – a company that can do no wrong.”  (Newsweek.com also The Daily Beast)

The long tail in economics blogs.  (jka on economics via Economist’s View)

Hero(es) of the week.  (Dealbreaker, The Daily Beast, also kottke.org)

Whipsaw alert!  Coffee is now good for you.  (FoxNews.com)

Have we missed an interesting post in the investment blogosphere? If so, feel free to drop Abnormal Returns a line.