While browsing the web I came across an 3 years old interview with Eugene Fama conducted for the Minneapolis FED. Fama is the father of the efficient market hypothesis (EMH), one of the candidates for this year’s Nobel prize in economics and a professor of finance at the University of Chicago.
In the interview, they covered a number of topics. However, the main topic was naturally the EMH and the possibility of beating the market without accepting unnecessary risks. Fama did not soften his opinion – beating the stock market in developed countries like USA, or European countries for a long period of time is almost impossible. As for the hedge funds or emerging markets, he is sceptical. But we will have to wait several years as the data we have is very short given the volatile nature of hedge funds or emerging market returns.