​Effing Brilliant!!!

Sunday Evening Carpe Diem

More below.

"From the WSJ series on passive vs. active investing, another article “What Does Nevada’s $35 Billion Fund Manager Do All Day? Nothing“:

Steve Edmundson has no co-workers, rarely takes meetings and often eats leftovers at his desk. With that dynamic workday, the investment chief for the Nevada Public Employees’ Retirement System is out-earning pension funds that have hundreds on staff. His daily trading strategy: Do as little as possible, usually nothing. The Nevada system’s stocks and bonds are all in low-cost funds that mimic indexes.

From his one-story office building in Carson City, Mr. Edmundson commands funds whose returns over one-year, three-year, five-year and 10-year periods ending June 30 bested the nation’s largest public pension, the California Public Employees’ Retirement System and deeply-staffed plans of many other states. Its outside-management bill is about one-seventh the average public pension. If Nevada consumed a typical Wall Street diet, it would pay roughly $120 million in annual fees. In 2016, Nevada paid $18 million."

He could probably cut the costs even more, but, hey, he is brilliant compared to his peers. 

"Note that Nevada’s pension fund balance of $35 billion is about the same as Harvard University’s $35.7 billion endowment. Harvard employees a staff of 200 to manage its endowment, with salaries of the top six employees ranging between $5 million and $12 million and an estimated total payroll of $50 million. In contrast, Mr. Edmundson’s salary is $127,121."