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I also have a really good connection who has gotten me into the "Citadel" Hedge Fund as of the first of this month. I have put $50,000 dollars into this one. From what I hear it's one of the best in the world and this is a tremendously profitable investment from an EV standpoint although it carries some risk. With the credit cruch, should I be looking to put more into this for my next investment?
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This sounds very strange. From your description you are not qualifed to be a hedge fund investor (look up "accredited investor"), so to let you in a fund the fund principles have to waive some basic rules meant to protect them from lawsuits.
Secondly, what hedge fund would accept only $50k? I can understand a tiny hedge fund accepting small amounts like that when they get started, but not one of the largest funds in the world. Typically large funds may have minimum investment levels from $5M and up.
Are you sure your "connection" got you into the hedge fund? that's it's not a mutual fund they market (which is a different beast altogether), some watered down version of what made them successful in the first place? Either way you are better off in index funds, which over time beat most active managers, including the typical hedge funds.
Your wisest advice has come from Ray Zee. Go to Vanguard, put everything in an index fund or even better, something like
their 2050 target retirement fund. It's a fund with very low costs and is regularly rebalanced the fund returns will stay as high as possible while you are young, but will trade excess returns for reduced volatility as you approach retirement in 2050. If you don't want to retire in 2050, they have a 2045 fund, a 2040 fund, etc.