Buffett Poised to Win Million Dollar Bet with Protégé

In 2007, Protégé Partners executive Ted Seides wagered a bet that hedge funds (heavily criticized by Buffett) would outperform index funds in the following decade, according to an article in last month’sWall Street Journal.—and it looks like the Oracle of Omaha is going to win. The index fund chosen by Buffett (Vanguard 500 Index Fund Admiral Shares) has climbed 66% through the end of 2015, while the basket of funds selected by has gained 22%.   The article explains Buffett’s criticism of the typical arrangement whereby hedge funds take a cut of investment gains in addition to charging management fees—all […]