Billionaire investor Warren Buffett is on course to win a $1m bet that the humble index tracker will produce better returns than a complex hedge fund.
In 2008, Berkshire Hathaway chief executive Buffett (pictured) made a bet with American asset management firm Protege Partners that the S&P 500 would outperform a group of five hedge funds over ten years. The results of the seventh year of the bet show Buffett and the index tracking fund are decisively in the lead, the Telegraph reports. In 2014 the S&P 500 tracker fund chosen to represent the index rose by 13.6%. By contrast, the average gain for the hedge funds was just 5.6%, according to Fortune magazine, which has been monitoring the bet annually. The index fund has now risen b...
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