Tuesday, 4 August 2015
Last updated 3 hours ago
Feb 7 2014 | 11:31am ET
Berkshire Hathaway chief Warren Buffett has opened a commanding lead in his wager with fund of hedge funds Protégé Partners.
Six years ago, Buffett and Protégé's Ted Seides made a $1 million bet, with Buffett predicting that the Standard & Poor's 500 Index would outperform hedge funds over a 10-year period, and Seides taking the opposite view. Well, six years later, Buffett's S&P index fund, Vanguard Admiral shares, is up 43.8%, against an estimated 12.5% for the five hedge funds picked by Seides.
The winner gets to choose the charity that gets the $1 million, which has actually grown to nearly $1.3 million since the money was invested in Berkshire stock.
Buffett's Admiral shares returned 32.3% last year, while Protégé's hedge funds gained just 11.8%.
"We've got our work cut out for us," Seides said. If anything, though, Buffett's success should give him hope: In the bet's first year, 2008, Admiral shares dropped 37% against the hedge funds' 24% decline. Buffett only took the lead in the race in 2012.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…