Need some insights on Correlations among hedge funds and between hedge funds and other assets.

In theory, they shouldn't be correlated: why should I pay a manager 2%/20% if what I'm getting is not a true alpha.In my experience, many funds I've seen are relatively uncorrelated on the upside, but get very correlated on the downside. I once selected about 40 funds at random one month (and double-checked to make sure my sample wasn't off), and I think 38 of them were down more than 1% that month (guess which one that was)?Hedge funds should also be uncorrelated to stock and bond markets, and many funds of funds claim to specialize in optimally offsetting any correlation, but a few back of the envelope regressions (which I know can be dangerous) were enough to make me not want to put any of my own money into those funds.

Thanks exotiq,Are you aware of any literature/web resource available for this.ThanksManish