Hedge Funds Offering Better Investment Returns In Uncertain Markets

Warren Buffet pledged $1 million to charity if he achieves a better return on investment by investing in an S&P 500 index fund as opposed to investing in hedge fund managers. The outcome will be determined later this year, and so far, the odds are in favor of Warren Buffet. According to Mr. Buffet, many hedge fund managers have shortchanged investors. Instead of hedge funds, Buffet prefers low-cost, simple investments, which can be held for longer periods. This bottom-up approach has been successful for several decades, and thus, American should shun away from hedge funds and invest well for their retirements.

It is irrefutably true that hedge fund managers offer low long-term returns as a result of excessive trading and significantly high management fees. On the other hand, risks and opportunity cost associated with passive index investments are unknown. A long-term retirement plan should be based on good long-term returns, and thus passive investment platforms are advisable. Although passive index returns provide high returns, they don’t cushion against market instabilities and failures. As a matter of fact, index funds expose its clients to 100 percent of the losses and volatility during market failures and learn more about Timothy.

An investor who could have invested in S&P 500 index fund about 40 years ago, he could be having over half a million dollars. At the same time an investor who could have invested in active funds at the same time, he could now be having more wealth. Given these statistics, you can make a wise investment choice and resume him.

Tim Armour

Tim is the chief executive officer and chairman of Capital Group. He also serves as the chairman and principal officer of Capital Research and Management Company. Tim Armour joined Capital Group in 1983 and became its CEO after the death of his predecessor, James Rothenburg in 2015. Mr. Armour holds an undergraduate bachelor degree in economics from the Middlebury College.

According to Tim Armour, Donald Trump’s victory affected asset prices. Since the election, bonds and equities have struggled to stabilize. He also warned that the markets would remain uncertain as Trump’s administration would make uncertain policies. In 2015, Tim led Capital Group into signing a partnership with Samsung Asset Management (SAM) with the aim of developing co-branded retirement products for the Korean market. Tim explained the importance of the partnership stating that would help individuals and organizations achieve their long-term investment goals and more information click here.

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