So what you’re really saying is: it's not that we are wasting our money by following the advice of money managers, it's just that we need to somehow find a way to imitate their stock picking tactics, so to avoid the fees on any gains…
But your example is weak because unlike mutual funds and other managed vehicles, hedge funds report only part of their strategy (long positions) and the details of their stock selection are revealed once a quarter. Furthermore, the details are made available more than a month after quarter end, making it impossible to follow their portfolios’ performance.
Until other investment managers realize this, hedge funds will continue to outperform since they don’t allow for investors to mimic their investment decisions in a timely manner.
For the majority of money managers, however, it is like allowing for their movie to be shared freely on torrent sites a few days after its release.