Do hedge funds suffer from competition ?

It's a really dumb question I know. But please understand it at a deeper level from my perspective. We've recently seen how big industrials and commodity producers are getting slaughtered. Caterpillar down almost 40% since its last year peak, saudi arabia oversupply of oil is murdering shale drillers in USA, all coal mines are going bust.

I'm just wondering, sure hedge funds seem to compete with other funds for investors (just like any business), but do hedge funds suffer from typical business competition ? Or are they money machines hedged to make money regardless of what someone/some other biz elsewhere does (hence the term "Hedge" fund ?

Just a noob wanting to understand finance a bit more. TIA.

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