Hedge Fund Reality

Horse Race - Hedge funds

For some reason, investors are drawn to complicated investing strategies, and over the past twenty years, Hedge funds have been at the top of the “complicated” list.

Hedge funds have traditionally had an aura of “sophistication” about them. A perusal of the daily financial news will highlight comments by some prominent hedge fund manager. Nevertheless, hedge funds have collectively trailed the returns of the S&P 500 Index for eight consecutive years ending 2016.

As this article points out, more and more college endowment funds, realizing that “complicated” means “underperform”, are moving toward the straightforward portfolio principles embraced by Soundmark Wealth Management.


Bill Schultheis is a Principal at Soundmark Wealth Management, LLC. and author of The Coffeehouse Investor book. He has spent his career helping investors build wealth, ignore Wall Street, and get on with their lives.