Re:Insider trading has been rife on Wall Street, academics c...
by duncan_bayne on Sunday February 11, 2018 @09:31PM
(#16356122)
My understanding was that Buffet invited a bet from any hedge fund manager, and the guy he ended up betting against was the only fund manager in the industry willing to bet on his own product.
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Re:Insider trading has been rife on Wall Street, academics c...
by dsacco on Sunday February 11, 2018 @09:46PM
(#16356166)
That’s not correct. The actual bet was always for a “portfolio of funds of hedge funds.”[1]
If the bet had been for a single fund, Simons or Klarman or any other hedge fund manager who has been beating the market by a large margin for 20 - 30 years could have won easily. But that bet wouldn’t have been instructive, because the world really doesn’t need to be shown that there are a minority of funds capable of winning the bet - on the contrary, it’s helpful to show that a representative sample of them fares poorly on average. Moreover, being a fund manager himself, Buffett would have been silly and hypocritical to actually support the former type of bet.
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