In the Buffett and Seides wager on net of fee returns, the passive S&P 500 index position produced a 7.1% compounded annual return after nine years against 2.2% for the five hedge funds of funds, evidence that industry performance does not justify the 2/20 fee structure.
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A year before the end of the wager, Buffet's nine-year result is a 7.1 % compounded annual return compared to Seides's 2.2%.
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Wulf A. Kaal, Blockchain Applications and Fee Structure Developments in Private Investment Funds (2017), III. Factors Creating Downward Pressure on Fees, p. 7 https://ssrn.com/abstract=2959730 · source PDF
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Wulf A. Kaal, Blockchain Applications and Fee Structure Developments in Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2959730
extended_bykaal:claim:3409548-002 The traditional 2 and 20 fee model has become increasingly difficult to justify, and embracing modern financia...
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