05 Sep 2019 2 min read

Is Passive's Rise Like a Poker Tournament?

By John Roe

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

1140-x-413-corridor.jpg

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.

John Roe

Head of Multi-Asset Funds

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 a wide range of macro topics. That love of variety also explains his craft beer fascination. Hard to shut up, he’s a regular guest on Bloomberg, a conference speaker and an LGIM Director. His analytical thinking benefits from being an Actuary with an economics degree and having previously worked as a strategist at RBS.

John Roe