10 years ago Warren Buffet "offered to bet that over a ten-year period from January 1, 2008 to December 31, 2017, the S&P 500 index would outperform a portfolio of funds of hedge funds when performance is measured on a basis net of fees, costs and all expenses." Of "thousands of professional investment managers who have amassed staggering fortunes by touting their stock-selecting prowess, only one man – Ted Seides – stepped up to my challenge." Now "Buffett’s index investment bet is so far ahead that Seides concedes the match, although it doesn’t officially end until Dec. 31." "In conceding defeat, Seides said the high investor fees charged by hedge funds was a critical factor. Hedge funds tend to be a good deal for the people who run the funds, who pass on big bills to the investors." "A $100,000 investment at the beginning of 2008 would have more than doubled to about $208,000 at the end of August this year, compared to only about $142,000 invested in the average hedge fund."
https://www.aei.org/publication/war...500-stock-index-would-outperform-hedge-funds/
https://www.aei.org/publication/war...500-stock-index-would-outperform-hedge-funds/