Author Topic: Hedge Funds Faced a Test in August, and Faltered - NYT (Sep 3, 2015)  (Read 1098 times)

a1smith

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Who needs hedge funds??  (hint - rhetorical question)

Hedge Funds Faced a Test in August, and Faltered - NYT

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Hedge funds “have failed to beat a 60/40 mix every single year since 2002, and they’re on track to repeat this year.”

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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.
  (my emphasis)  Wow.

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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.”
  (my emphasis)

Looks pretty simple, eh?  60/40 AA in Vanguard and you beat their results.  So, how about you let me run the college fund and my kids get to go there for free?  That's all I'll charge!  :-D

marty998

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Re: Hedge Funds Faced a Test in August, and Faltered - NYT (Sep 3, 2015)
« Reply #1 on: September 05, 2015, 05:06:09 PM »
Hows that zero coupon bond bet going between Buffett and the hedge funds?

a1smith

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Re: Hedge Funds Faced a Test in August, and Faltered - NYT (Sep 3, 2015)
« Reply #2 on: September 05, 2015, 06:24:58 PM »
Hows that zero coupon bond bet going between Buffett and the hedge funds?

As of Feb 2015, Buffett is ahead 63.5% to 19.6%.

Warren Buffett adds to his lead in $1 million hedge-fund bet