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Crescat Capital: Passive Investing Bubble And The ETF Industry

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Jacob Wolinsky
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ValueWalk's Raul Panganiban interviews Crescat Capital's Kevin Smith And Tavi Costa, discussing their trade of the century idea. In this part, Tavi and Kevin discuss the passive investing bubble and the ETF industry, the sectors which are not in a bubble, and their portfolio construction process.

Q4 2019 hedge fund letters, conferences and more

Bubble
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Raul Panganiban: Yeah. On the passive investing bubble isn't for the market cap weighted indexes, or is that for the ETF industry as a whole?

Kevin Smith: Well, it's, it's really for the stock market as a whole and certainly the ETF industry is part of that...

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Jacob Wolinsky is the ex-Founder of Valuewalk.com (founded 2011, sold 2023). He is founder of HedgeFundAlpha (formerly ValueWalk Premium), a hedge fund focused intelligence service for institutional investors. Prior to founding Valuewalk, Jacob worked as an equity analyst covering small caps, a micro-cap analyst, doing member development a large hedge fund community and freelance financial writing. Jacob lives with his wife and five kids in Passaic NJ. - Email: jacob(at)hedgefundalpha.com. For confidential inquires email me for my Signal id. Other methods of secure communication are also available. FD: I almost exclusively avoid the purchase of equities to avoid conflict of interest and any insider information. I only purchase broad-based ETFs and mutual funds. I will disclsoe if I have a stake in any company, but in general avoid