> If he wanted to bet against hedge funds in general, then the bet would have been constructed like that (i.e. average performance of funds which aim to beat th

> If he wanted to bet against hedge funds in general, then the bet would have been constructed like that (i.e. average performance of funds which aim to beat the market). Quoting the shareholder's letter from 2016 [1], the actual bet was "that no investment pro could select a set of at least five hedge funds – wildly-popular and high-fee investing vehicles – that would over an extended period match the performance of an unmanaged S&P-500 index fund charging only token fees. [...] For Protégé Partners’ side of our ten-year bet, Ted picked five funds-of-funds whose results were to be averaged and compared against my Vanguard S&P index fund." [1] https://www.berkshirehathaway.com/letters/2016ltr.pdf https://www.berkshirehathaway.com/letters/2016ltr.pdf