Hedge Funds Continue to Lose to the Index

Many call it Warren Buffett’s bet against hedge funds. 

Keep in mind the bet doesn’t pit Warren Buffett’s skill against other hedge fund managers. Buffett simply picked the world’s simplest index fund and bet its performance against hedge funds for a 10 year time period.

So what is the bet really? It isn’t Buffett against hedge funds. Rather, it is a challenge to hedge funds to prove aren’t utterly worthless……and they are losing.

There has been a ...

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Is CalPERS Dropping Hedge Funds?

Apparently CalPERS (the California State retirement pension fund) is no longer going to invest in hedge funds, according to this post from Gawker.

I hope this is true. The Gawker article does a nice job of identifying that this is a good move on the part of CalPERS. This is not a “neutral” event or a “wait and see what happens” occurrence. This is, without a doubt, a ...

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Common Sense Hedge Fund – Performance Worse than the Prostitution

A hedge fund manager right here in Portland, Oregon was recently arrested for soliciting a prostitute.

On top of that, many of the hedge fund’s clients are now pulling out their money. This company had roughly $3.2 billion under management – a huge amount of money that translates into the hedge fund manager making an outrageous amount of money (for themselves – not necessarily for their investors).

I know ...

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Hedge Funds for the Masses – Don’t Fall for it

It is always disappointing to see an article like this. Investment banks are working on ways to sell hedge funds with a lower minimum investment. Will they never relent on their mission to screw you out of your money?

Investment banks have been working this way for quite some time now. That is, bringing vehicles that are typically used for larger accounts down to the small ...

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Hedge Fund Catch-22

Here is one of the many reasons why you really shouldn’t invest in hedge funds.

There was a piece on Yahoo! Finance yesterday that touched on hedge funds and some of their problems. You’ve heard them all before. High fees. High risk. Lack of liquidity. etc. etc. etc. This Yahoo! piece was actually pretty benign toward the hedge funds. I think they were being way too nice.

But here is ...

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