The funds' returns have been disappointing, partly because they charge hefty commissions but also because the state has required them to hold a lot of government bonds (these amount to 55% of their portfolios).
When he appoints people like Ms Miers or Michael Brown, the erstwhile horse-expert whom he put in charge of the Federal Emergency Management Agency, it returns to haunt him.
On the other hand, many financial advisers argue that actively managed funds rarely generate strong enough returns to justify the fees that the fund companies charge.
Hedge-like mutual funds seek to deliver the best of both worlds: strong returns regardless of market conditions, and lower fees than the customary 2% of assets and 20% of returns that hedge funds charge.