#084 Michael Green On Passive Investing Creating Distortions In The Market Right Now
The Julia La Roche Show
00:00
The Advantages and Disadvantages of Systematic Strategies
I was able to figure out in advance that on a relatively small change in the US equity markets, roughly a 4% decline that that product was likely to go to zero. Most of these strategies carry no cash to meet redemptions or create their own what's called endogenous liquidity. This can be a drag on performance if markets are going up but it also creates optionality for the manager. The world's largest actively managed mutual fund is the Fidelity Contra Fund.
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