[chronic2021]

If you cherry pick the US S&P (over international, and over small cap), I’m allowed to cherry pick hedge funds.

Many funds consistently outperform the S&P by 2-3X over 30-40 years. Minimum investment, $5-10M, of course.

Buy and hold is the best option for those under USD $10 million net worth, but you must acknowledge there are semi-closed funds/prop trading firms that consistently beat the market.

[dasil003]

Yes, just like there are individual stocks that beat the market. How do you pick them?

[orojackson]

Stop being poor so you can go into those badass hedge funds that always beat the S&P 500 /s

But seriously, I'd rather just put money into VTI and VXUS and go back to playing video games, planning a D&D one-shot, programming a bit, or hanging out with friends in my spare time. Let the active traders waste their time poring over 10-Ks and/or charts. I'll be here having fun and taking what the market gives.

[chronic2022]

> Yes, just like there are individual stocks that beat the market. How do you pick them?

The same way you picked your passive index fund: look at 20-30+ years of data.

Unfortunately, VTI, VT, VOO all underperform the top hedge funds, when evaluated over 20 years (risk adjusted return, downside deviation, and absolute return). I’d go further back but VTI was created in 2001 whereas the hedge funds were created in 1980/1990.