For some reason, investors are drawn to complicated investing strategies, and over the past twenty years, Hedge funds have been at the top of the “complicated” list.
Hedge funds have traditionally had an aura of “sophistication” about them. A perusal of the daily financial news will highlight comments by some prominent hedge fund manager. Nevertheless, hedge funds have collectively trailed the returns of the Standard & Poor’s 500 Index for eight consecutive years ending 2016.
As this article points out, more and more college endowment funds, realizing that “complicated” means “underperform”, are moving toward the straightforward portfolio principles embraced by the Coffeehouse Investor and Soundmark Wealth Management.