Warren Buffett: Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'

Warren Buffett is losing his "big bet" against a collection of hedge funds, but it's still early in the game.

Buffett and Protégé Partners LLC of New York City started a 10-year wager last year.

With a Treasury bond that will be worth $1 million at stake, Buffett has put real money behind his contention that an S&P 500 index fund will outperform five funds-of-hedge-funds over a decade, after all fees and expenses. (The money goes to the winner's favorite charity.)

Buffett is represented by Vanguard 500 Index Fund Admiral Shares (VFIAX). Protégé chose the five funds-of-funds. (Buffett knows the names of the five funds, but they are not being publicly revealed.) Click here