Risk is supposed to equal return. However, as U of T found out this past year this not necessarily the case.  University of Toronto Asset Management responsible for managing the institutions money realized a $1.5 Billion loss in a single year, the equivalent of 30% of the institution’s pension and endowment funds.

The loss is attributed to the aggressive style of investing in hedge funds and private equity.

If an enormous pension fund can’t even make the right decisions, what is your average investor supposed to do?  I recommend everyone read Michael Edesses book, The Big Invstment Lie, and adopt his 10-point-investment-strategy.  Note, if your investment advisor is so skilled at making money, why is he/she still working and charging you fees.