The district court properly dismissed this suit against a plan fiduciary for breach of the duties of prudence and loyalty by investing some plan funds in hedge funds and private equity funds and by steering investments into firms that Intel’s investment arm had also invested in. Prudence must be evaluated prospectively and so it is not enough to allege that the fiduciaries could have obtained better resulted by other investment choices. If plaintiff claims a prudent fiduciary would have invested in different funds, he must supply a sound basis for comparison. Plaintiff didn’t do so, and instead just made general assertions about the riskiness of hedge and private equity funds. As to the duty of loyalty, the complaint alleged only potential, not any actual, conflicts of interest.