There’s a famous story about Warren Buffett betting a million bucks that a hedge fund can’t beat the S&P 500 – the hedge fund conceded two years early.
Well, turns out actively managed mutual funds, even those that meet the qualities outlined by David Swenson, the manager of the Yale Endowment; don’t do that well either.
Longleaf Partners Fund: Beating the Market Is Harder Than You Think [My Money Blog] – “Unfortunately, the performance of the Longleaf Partners Fund for most of that time has been rather dismal. LLPFX is the blue line, while the (no cost) index benchmark (Morningstar US Mid Broad Value TR USD) is yellow, and the category of peers (Mid-Cap Value) is red.”