Thursday, 2 October 2014
Last updated 1 hour ago
Jan 25 2013 | 1:18pm ET
Hedge funds may have lost more than some pride when they were trounced by the Standard & Poor's 500 Index last year. They may have lost their battle of the titans with Berkshire Hathaway's Warren Buffett.
The Oracle of Omaha made a 10-year bet five years ago, that money invested in an S&P index fund would outperform a fund of hedge funds. And at halftime, Buffett (and the S&P) is up by more than a touchdown.
Buffett's index fund is up 8.69% over the past five years. A suite of five funds of funds selected for the battle royale by Protégé Partners is up just 0.13% over the period.
Buffett benefitted handsomely from a nearly 16% surge by the S&P last year, the second year in a row that the index bested the average hedge fund. Protégé's fund of funds of funds, by contrast, rose only 6.46% during the year, in line with the average hedge fund's performance for 2012.
Of course, there's a long way to go. In the bet's first year, 2008, Buffett's Vanguard Admiral shares lost 37% against Protégé's 24% drop. Still, the results—the first time either side has been in the black—earned a "gulp" from Protégé's Ted Seides. It's also the first time that Buffett's been ahead as the S&P climbed out of a deeper hole than the hedge funds.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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