Hedge funds “have failed to beat a 60/40 mix every single year since 2002, and they’re on track to repeat this year.”
Victor Fleischer, a law professor at the University of San Diego, created a stir last month when he estimated that five prominent universities with big hedge fund and private equity portfolios — Yale, Harvard, Princeton, Texas and Stanford — paid their managers more than they gave out in financial aid to students.
Moreover, “there are all these highly paid consultants and advisers telling clients to put money in hedge funds,” Mr. Lack said. “You don’t get paid much to tell people to put money in Vanguard.”
Hows that zero coupon bond bet going between Buffett and the hedge funds?
