Nine years ago Ted Seides bet billionaire Warren Buffett that five hedge funds' returns, over a 10-year-period, could beat any gains on the S&P 500.
And today Seides conceded defeat, writing about his experience on Bloomberg.
High hedge-fund fees weren't the only reason for the loss, either, Seides explains.
Seides lists other factors, such as price and risk, and argues Buffett won because he "actively" chose what turned out to be the best investment over the 10-year period: the .
"My guess is that doubling down on a bet with Warren Buffett for the next 10 years would hold greater-than-even odds of victory," Seides wrote.
"The S&P 500 looks overpriced and has a reasonable chance of disappointing passive investors. Hedge funds mitigate risk in bear markets, while seeking to participate in some of a bull market. Investing in hedge funds is a bet against continuing bull markets; investing in the S&P 500 is a bet on a continuing bull market."