When passives rule(d) the world

Discussions about passive equity exposure dominate many Investment Committee meetings. This note attempts to understand some of the dynamics driving the passive trend and their effect on markets.

We have read a small portion of what is a growing body of academic research looking at this subject. Such research should matter to every long-term investor. We have summarised some of the key themes and ideas in our own simple terms. If you want to get more complex, a short bibliography follows at the end of the note.

Read the blog here.