Read a recent research from Alvine Capital. It's a bit repetitive, but the message is well formulated at the first page.
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Passive investing has become the strategy de jour exhorted by everyone from regulators to financial pundits—this is now a very crowded trade.
Investors should always be wary of market fads. While the theory of capturing the market’s beta cheaply seems simple—the practical chasing of defined securities to achieve weighting is leading to inevitable distortions. Deep value alpha creation from activist managers should now be the preferred strategy.
http://alvinecapital.com/wp-content/uploads/2017/01/Emerging-Trouble-in-the-Future.pdf
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