Billionaire Warren Buffett has taken a swipe against hedge funds, saying their fees are exorbitant and that monkeys could do as good a job at calling markets. Buffett, who is worth an estimated $90 billion, said in his annual letter to Berkshire shareholders on Friday that he was “very concerned about the excessive compensation of some fund managers.” " Investors seem to be heeding Buffett's anti-active advice, as more than $20 billion flowed out of U.S. active equity funds in January despite a rising stock market, according to Morningstar. At the same time he heaped praise on index-linked funds that charged a fraction of the fees of active funds and made investors more money, and hailed Jack Bogle – the founder of passive investment giant Vanguard – as a hero.
Billionaire Warren Buffett has taken a swipe against hedge funds, saying their fees are exorbitant and that monkeys could do as good a job at calling markets. Buffett, who is worth an estimated $90 billion, said in his annual letter to Berkshire shareholders on Friday that he was “very concerned about the excessive compensation of some fund managers.” At the same time he heaped praise on index-linked funds that charged a fraction of the fees of active funds and made investors more money, and hailed Jack Bogle – the founder of passive investment giant Vanguard – as a hero.