Warren Buffett Wins $1M Bet Against Hedge Funds, Gives It to Girls' Charity

Score one for Warren Buffett and zero for hedge funds. And millions for Girls Inc. of Omaha.

In 2007, the famed billionaire investor made a $1 million bet that an S&P 500 stock index fund would outperform a basket of hedge funds over the course of a decade.

The index fund returned 7.1 percent compounded annually over the 10-year period, easily beating the 2.2 percent average return of a basket of funds picked by asset manager Protégé Partners, according to The Wall Street Journal. 

Buffett promised to give the prize money to his local affiliate of Girls Inc., a non-profit organization that provides programs designed to inspire “all girls to be strong, smart and bold.”