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Wall Street’s Newest Puzzle

21 September 2017

The Wall Street Journal has an interesting article on how active managers are searching for opportunities from the continuing shift towards passive, index investing. One of the potential detriments to passive investing is the lack of price discovery, which means that the buyer (passive index funds) does not care about valuation. In addition, the article discusses how some managers are data mining the percentage of stock ownership by index funds and money flows to gain an advantage in trading. Read the article here.