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A comment on Buffett wins $1M decade-old bet that the S&P500 would outperform hedgefunds. Parent comment

Re:Buffett wins $1M decade-old bet that the S&P500 would out... by physguy1123 on Sunday September 17, 2017 @02:49PM (#15271072)
I expect that you are right about a significant number of funds (I would say most long-only funds). But a decent chunk of the industry exists because investors want higher-sharpe investments than the market even if they don't beat a bull market and/or investments that will remain uncorrelated with the market.

This is a reason why a lot of money is flowing into quant funds despite the overall outflow, because most quant strategies do great in volatile markets (but mediocre otherwise) where other funds are the market+fees.

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Re:Buffett wins $1M decade-old bet that the S&P500 would out... by valuearb on Monday September 18, 2017 @12:02AM (#15273317)
Money is flowing in because they think they can pick the funds with true alpha, but they can't.
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Re:Buffett wins $1M decade-old bet that the S&P500 would out... by osrec on Sunday September 17, 2017 @05:07PM (#15271702)
Yes, my reply was focusing on equities as the s&p was referenced in the post. There are other kinds of funds that do reasonably well; distressed credit shops seem to have done okay in the past few years, although that's starting to tail off now as there are more players in the market.
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