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Buffett's index fund now leads hedge funds in bet

OMAHA, Neb. (AP) -- Billionaire Warren Buffett's argument that high fees hurt investors is getting stronger because his chosen S&P 500 stock index fund is now outperforming a collection of hedge funds in a 10-year bet.

Buffett did not immediately respond Thursday. He made the wager in 2008 with the money managers who own Protege Partners LLC.

Fortune magazine reported the latest standings.

After gaining 15.96 percent last year, Buffett's index fund now posts a total gain of 8.69 percent.

The hedge funds recorded a 2012 gain of 6.46 percent. Over five years, the hedge funds have a 0.13 percent gain.

The winner will donate at least $1 million to charity. Buffett plans to donate to Girls Inc. of Omaha if he wins. Protege will donate to Absolute Returns for Kids if it wins.