Billionaire investor Warren Buffett looks set to win a $1m bet that the humble index tracker will produce better returns than a complex hedge fund.
In 2008 Buffett made a bet with American asset management firm Protege Partners that the S&P 500 would outperform a group of five hedge funds over 10 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 in the bet rose by 13.6%. The average gain for the hedge funds was just 5.6%, according to Fortune magazine, which has been monitoring the bet annually. Since the bet was taken out, the index fund has risen 63.5%. The hedge fun...
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