Burton Malkiel Believes Wealthy Would Do Better in Index Funds

By on February 11, 2010

Burton Malkiel, professor of economics at Princeton University and famous author, says the wealthy should avoid hedge funds because of their high fees. Mr. Malkiel has another objection to them. “There are very few that are any good,” he said. He added that his research had shown the good hedge funds of one era were not the good ones of another. And even if the hedge fund is a good one, he said, it’s likely to be selective in its investors or simply be closed to new ones.

While Malkiel will own a few stocks for fun, he keeps his “serious” money in index funds.

Source: The N.Y. Times
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