Originally Posted by
ThumbsUp
Are you a member of any hedge funds? Obviously there are many out there, but my K-1s have not only beat the S&P every year, but also post losses every year while doing so. The point of hedge funds is to be tax efficient. If all you have are your retirement accounts, that is another story as they are inherently tax efficient.
Not sure of your particular situation but I suspect they are returning your capital to you and that’s why it looks like you are beating the market and having tax loses. Warren Buffet won his million dollar bet that an S&P index would beat hedge funds. Every study I’ve read shows low cost index’s beating hedge funds.
Hedge funds make hedge fund managers rich (with your money), and give investors who want to feel fancy, something to talk about at the club. They don’t beat low cost index funds. That may change in the future, but right now you are just making your hedge fund manager and whoever sold you the fund rich.