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Is passive's rise like a poker tournament?

The rise of index-tracking funds may actually be making active management harder.

Michael Burry featured in the Big Short for successfully betting against mortgage-backed securities in the run up to the financial crisis. So should we be worried that he now sees a bubble developing in passive investment?

I don’t think so. But rather than creating new opportunities for active managers, I’d argue that the rise of index-tracking funds may actually be making active management harder.

To find out why, and what that has to do with poker, please watch the video below.