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Buffett Is Catching Up in the Bet with Hedge Funds

May 07, 2012 | About:
Warren Buffett updated the results of his bets against hedge fund during the shareholder meeting of Berkshire Hathaway (NYSE:BRK.A)(NYSE: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.

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

Rating: 3.6/5 (11 votes)


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GuruFocus has detected 3 Warning Signs with Berkshire Hathaway Inc $BRK.B.
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