New Hedge Fund Fee Structures Reveal Traditional Model On Verge Of Collapse
by Tyler Durden
ZeroHedge.com
Mar 25, 2017
Nearly a decade ago, Warren Buffett bet Protege Partners, a fund of hedge funds, that over the course of 10 years the S&P would outperform Protege’s returns net of all fees, costs and expenses. To make it real, the loser agreed to pay $1 million to the charity of the winner’s choice.
At this past year’s annual meeting, Warren Buffett provided an update on the now 8-year-old bet and, sure enough, the S&P has obliterated Protege’s net returns by over 40%, on a cumulative basis.
Buffett referred to the bet as the “most important investment lesson in the world.”
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