In 2016, the Harvard University’s endowment fund had a negative return of 2 percent (400 basis points worse than the benchmark) due to high fees and active manager’s mistakes. For a number of year, the fund outperformed benchmarks but now the magic is gone.
The majority of actively managed equity funds in Europe have failed to beat their benchmark over the past 10 years.
According to Morningstar, since 2007 passively managed funds have grown four times faster than active funds.
When it comes to investing, Bogle and Buffet are quite different, the front runner of index investing versus the ultimate stockpicker. Nevertheless, they have the same view about hedge funds: it is stupid to invest in them.
Warren Buffet say that hiring a financial consultant results in a “huge minus” most of the time for the end investor
"What we’re seeing in the investment industry isn’t a free market. Hidden fees make proper comparison, and therefore competition, impossible”