Over the years, more and more investors have been pulling their holdings out of actively managed funds and placing them into passive funds. The result has been a significant change to the structure of the equity markets, and investors who don't factor in this change and others will find themselves struggling to generate positive returns.
The Changing Equity Market Structure
At the 2022 Invest for Kids Conference, Ricky Sandler of Eminence Capital explained how the structure of the equity markets has changed and how those changes have affected his stock picks. He noted that 15 years ago, active investing dominated while passive investing was relatively minor.
Q3 2022 hedge fund letters, conferences and more
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