Warren Buffett has been vocal in his criticism of hedge funds and their fees.
He calls hedge fund managers the "2 and 20" crowd because they typically charge 2% of the principal and 20% of the profits each year.
Buffett says "Investors, on average and over time, will do better with a low cost index fund then with a group of funds of funds."
He recently backed up his stance by agreeing to a wager with Ted Seides, a co-founder of hedge fund Protege Partners LLC.
The bet will compare, from 2008-2017, the performance of the S&P 500 index vs. five portfolios of hedge funds (including all fees, costs, and expenses).
The bet is being held by the Long Bets website.
At stake is $1,000,000 to the winner's favorite charity.
Wednesday, 9 July 2008
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment