Saturday, 20 September 2014
Last updated 13 hours ago
Jun 9 2014 | 10:44am ET
Warren Buffett’s index-fund investments have handily beaten hedge funds in his famed bet with Protégé Partners’ Ted Seides, and he doesn’t see why the same can’t be true for a California public pension fund.
The City & County of San Francisco’s Employees’ Retirement System’s chief investment officer wants to allocated 15% of its $20 billion to hedge funds. Board member Herb Meiberger disagrees, and has enlisted the backing of the Oracle of Omaha.
Meiberger went to Omaha last month for Berkshire Hathaway’s annual shareholder meeting, but wasn’t able to ask his question. Instead, he posed it to Buffett in a May 6 letter.
Buffett responded emphatically, telling Meiberger “I would not go with hedge funds.” Rather, Buffett suggested “index funds and net sell options.”
In 2007, Buffett bet Seides that a Standard & Poor’s 500 Index fund could beat a basket of hedge funds over a 10-year period. Six years in, he’s winning by a wide margin, with a 43.8% return against Seides’ 12.5%.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.