Richard de Lisle on FTAdviser
15 January 2024
“Imagine that we end up with all funds being passive. They can only invest by taking account of market cap. No news matters and so volatility is diminished. This encourages companies to reduce debt levels and sell new equity. The passives’ only concern is the weight of a company’s stock in the index. And so, the big get bigger.”
VT De Lisle America Fund Manager, Richard de Lisle, discusses the investment implications as passive investing overtakes active management in his article on FT Adviser.