Rip Van Winkle Indexing
Executive Summary
There’s no doubting the spectacular success of “passive” investing based on the market capitalization weights of companies. It is estimated that almost 20% of all managed fund assets are based on cap-weighted indices, up from less than 9% in 1998. It is based on the theory that in an efficient market, where equity prices reflect all known information about a company, there is no capacity for a talented analyst to outperform, and a portfolio that uses the most up-to-date prices should deliver the best results. On the . . .
SORRY! This content is exclusively for paying members. If you are subscribed and having an account error please clear cache and cookies if that does not work email [email protected] or click Chat.
|
