Warren Buffett has a lot of money to put where his mouth is. The Oracle of Omaha has bet $320,000 that the market, as measured by the S&P 500, will beat a collection of five carefully selected hedge funds, reports CNNMoney. Taking him on is Protégé Partners, a firm that picks—what else?—mutual funds.
Over the 10 years of the bet, the $640,000 total stake will grow to $1 million, to be donated to the winner’s charity of choice. Buffett contends any advantage hedge funds have is wiped out by fees. But Protégé isn’t cowed by the investing legend. “Fortunately for us, we're betting against the S&P's performance, not Buffett's,” said one principal.