Buffett bets market will beat hedge funds

Warren Buffett has placed a wager that the Standard & Poor's 500 will beat hedge funds over the next 10 years, reports Fortune. In what amounts to a proposition bet, Buffet placed his wager against Protégé Partners, a firm that runs funds of hedge funds. Over 10 years, if the S&P 500 beats the average return of five funds of funds, net of all fees and other costs, Buffett will win. The real winner here will be one of two charities. Both Buffett and Protégé Partners put up $320,000. The funds are being held in a zero-coupon bond expected to be worth $1 million in 10 years. The money goes to the charity of the winner's choice. The bet is being administered by the Long Now Foundation, which will oversee similar prop bets for charity. So who's going to win?  

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