Disclaimer: Views in this blog do not promote, and are not directly connected to any L&G product or service. Views are from a range of L&G investment professionals, may be specific to an author’s particular investment region or desk, and do not necessarily reflect the views of L&G. For investment professionals only.

05 Sep 2019
2 min read

Is Passive's Rise Like a Poker Tournament?

The rise of index-tracking funds may actually be making active management harder.

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Michael Burry featured in the Big Short for successfully betting against mortgage-backed securities in the run up to the financial crisis. So should we be worried that he now sees a bubble developing in passive investment?

I don’t think so. But rather than creating new opportunities for active managers, I’d argue that the rise of index-tracking funds may actually be making active management harder.

To find out why, and what that has to do with poker, please watch the video below.

 

Factor Based Investing
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John Roe

Head of Multi-Asset Funds, Asset Management, L&G

With failed football dreams behind him, John applies the same level of enthusiasm to investing and how to improve outcomes by battling behavioural biases. He leads on oil research, but also gets involved in... 

More about John

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