Warnings that index funds have broken the stock market all imply a threshold: a share of the market at which price discovery fails. Nobody making the argument names it. Owen Lamont, writing in the Financial Analysts Journal, argues that no such number exists short of complete passive ownership, and that what actually determines whether prices stay informative is who is left doing the trading. His case, the strongest peer-reviewed research against it, and what the performance
In January 2020, Terry Smith told his investors why Neil Woodford had failed: the star manager changed his game. Five years on, Smith's own Fundsmith letter records the highest turnover in the fund's history and a new taste for momentum — and the way he explains it matches a pattern behavioural researchers have measured in fund managers' own words.
Robin Powell
Jul 158 min read
SUBSCRIBE
Simply provide your email address to receive our regular update.
