There’s A Philosophical Problem With Passive Investing That A Lot Of Investors Don’t Appreciate | Value Investing News

There’s A Philosophical Problem With Passive Investing That A Lot Of Investors Don’t Appreciate

  • During his recent interview with Tobias, Jesse Felder, hedge fund manager and Founder of The Felder Report Newsletter discusses the philosophical problem with passive investing whereby indexes systematically underweight owner-operated companies and systematically overweight companies.
  • Jesse Felder: Something that Steve Bregman, I had on my podcast a couple years ago, and he was … I don’t think people appreciate the fact that it was 2004 or five when they actually changed the index methodology from just cap-weighted to float-adjusted cap-weighting.
  • Jesse Felder: Go look at Intel, a stock chart of Intel.
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