Stop Paying for Comfort: How Hedging Makes Funds Underperform SPY

Added: 2026-05-27

[00:00:00]This is why most hedge funds can't beat the S&P 500.

[00:00:03]most of these funds aren't beating the S&P 500.

[00:00:05]if you just stuck your money in unhedged in the S&P 500, the SPY or some sort of a SPY equivalent and you've did nothing, you'd make more money than most of the hedge funds out there.

[00:00:16]That's because they're trying to hedge against these losses.

[00:00:21]And it doesn't work, right?

[00:00:22]It ends up costing you money.

[00:00:25]for the mental comfort.

[00:00:28]the more you can put up with mental discomfort, the better off you'll do in the business.

[00:00:32]The more you're gonna cave into mental discomfort, the less money you're gonna make.

[00:00:37]And a lot of times some of the stuff that caves mostly into your mental discomfort is actually puts you in a blow up scenario where you're actually gonna lose everything.

[00:00:45]we've seen that happen to many, many times.

[00:00:47]particularly in the last couple of years.