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Buffett Is Catching Up in the Bet with Hedge Funds

May 07, 2012 | About:

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Warren Buffett updated the results of his bets against hedge fund during the shareholder meeting of Berkshire Hathaway (BRK.A)(BRK.B). As of Dec. 31, 2011, Buffett is lagging slightly.

The bet was between Warren Buffett and hedge fund Protégé Partners LLC for a 10-year period. The hedge fund built an index of five funds that invest in hedge funds to compete against the S&P 500 index. The winner’s charity of choice gets $1 million when the bet ends on Dec. 31, 2007.

These are the performance numbers updated by Buffett during the shareholder meeting on Saturday.

Year S&P Index Fund Hedge Funds
2008 -36.90% -23.90%
2009 26.62% 15.92%
2010 15.05% 8.46%
2011 2.08% -1.86%
cumulative -6.27% -5.89%


The index fund is catching up after a deeper loss in 2008. It was lagging by only 0.38% after four years. Buffett did not comment the performance of the hedge fund so far this year. The S&P500 index is up 11.5% year to date.

To learn more about what Buffett said during the meeting, please go to the complete shareholder meeting notes.

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