New York (HedgeCo.Net) – Billionaire philanthropist Warren Buffett made a decade long bet with hedge fund manager Protégé Partners that funds that invest in hedge funds couldn’t beat the stock market , profit wise.
The prize, Berkshire Hathaway stock worth almost $1.3 million as of the end of 2013, will go to the winner’s chosen charity. Buffett’s designee is Girls Inc. of Omaha, and Protégé’s is Absolute Returns for Kids.
Fortune reports that after six years, Buffett’s fund, a S&P index fund, Vanguard 500 Index Fund Admiral Shares, was up 43.8%. For the same period, Protégé’s five funds of funds, on the average, gained only approximately 12.5% .
A campaign specifically focusing on billionaires was made public in 2010 by Warren Buffett and Bill Gates. The Huffington Post reported in April 2012 that “81 billionaires committed to giving at least half of their fortunes to charity”. As of July 2013, 113 billionaire individuals and couples and one family group have signed the pledge.
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