Warren Buffet vs Hedge Funds: the bet

Warren Buffet has bet 1 million dollars that over the next 10 years, the S&P500 index will beat a selection of carefully selected Hedge Funds. His argument is that huge Hedge Funds fees ( 1.5% management fees + 20% performance fees + 1% management fee for the fund) will eat up any potential gain. Hedge Funds focus on absolute returns and low volatility so they tend to do better when the markets go down. As a result, it's likely that the result of this bet will depend on how the markets and the economy overall does. Who do you think will win? Join the survey

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