5 ms·
> have only managed to beat an S&P 500 index fund by 1-2% after fees "Beating" the S&P500 doesn't necessarily mean earning higher returns. Earning the same ret
by throwaway9d0291 7y ago
> have only managed to beat an S&P 500 index fund by 1-2% after fees
"Beating" the S&P500 doesn't necessarily mean earning higher returns. Earning the same returns with lower risk/volatility would also be widely accepted as "beating" it as most people are more afraid of losing their fortune than they're ambitious to increase it.
I'm curious whether taking that into account changes how many private equity firms beat the S&P 500.
- pmart123 7y agoGiven your money is tied up for 10 plus years and there’s a lot of leverage involved, you need to have a much higher hurdle rate to want to invest. Say 3.50% or more after fees.