kaal:claim:2959730-011

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.

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%.

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

Wulf A. Kaal, Blockchain Applications and Fee Structure Developments in Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2959730

• nine years into the ten year 2008 to 2017 wager
• returns measured net of fees

empiricalsupport: evidencedfailure: Fee structure unjustified by net of fee performancefamily: agency-cost-and-managerial-opportunismprivate-funds

• extended_by kaal:claim:3409548-002 The traditional 2 and 20 fee model has become increasingly difficult to justify, and embracing modern financia...

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