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What's the point of a hedge fund if they can't "beat" the market?
- ipnon 3y agoMany firms beat the market spectacularly, and in many different ways. Berkshire Hathaway, Renaissance, Jane Street all have their niche and make fabulous returns. So the premise seems flawed, similar to asking "why do VCs invest in startups if 90% will go bust in a few years?" The 10% that compensate for the rest in a power law fashion.
- vlod 3y agoA quick search "Jane Street returns compared s&p500" lead me to this: https://hedgefollow.com/funds/Jane+Street+Group/Performance-History https://hedgefollow.com/funds/Jane+Street+Group/Performance-... Maybe I'm doing something wrong, but from the graph it's under performing. I remember Buffett's advice saying he likes VOO (ETF). Too lazy to look up Renaissance.