Comments on: Passive managers spark space race with launch of new satellites http://allaboutalpha.com/blog/2008/03/13/passive-managers-spark-space-race-with-launch-of-new-satellites/ Hedge funds, portable alpha, 130/30 and alpha-centric investing Fri, 19 Mar 2010 07:52:26 +0000 http://wordpress.org/?v=abc hourly 1 By: RMahmud http://allaboutalpha.com/blog/2008/03/13/passive-managers-spark-space-race-with-launch-of-new-satellites/comment-page-1/#comment-91316 RMahmud Sun, 16 Mar 2008 17:55:16 +0000 http://allaboutalpha.com/blog/2008/03/13/passive-managers-spark-space-race-with-launch-of-new-satellites/#comment-91316 Asset management has been moving away from constrained and closet indexing. Investors that go for the passive indexing route leave money on the table and the best of the brave ones that go for active should be successful, if at least only some of the time. In other words, it may be possible that the increasing polarisation of investing (unconstrained active and passive indexing) could generate more inefficiencies. This is on top of the creation of new markets in emerging countries that are still relatively inefficient. Asset management has been moving away from constrained and closet indexing. Investors that go for the passive indexing route leave money on the table and the best of the brave ones that go for active should be successful, if at least only some of the time.

In other words, it may be possible that the increasing polarisation of investing (unconstrained active and passive indexing) could generate more inefficiencies. This is on top of the creation of new markets in emerging countries that are still relatively inefficient.

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