There was a variety of rending of clothes and gnashing of tooth in recent times over the demise of energetic administration. In the meantime, evil passive investing retains rising.

That is wrecking value alerts, killing the dynamism of markets, fuelling bubbles/bear markets (delete in keeping with no matter markets are doing that 12 months) and imperilling capitalism itself. Yada yada.

The fact is after all that there’s extra buying and selling than ever earlier than, extra mutual funds than ever earlier than, and extra hedge funds than ever earlier than. The latter particularly has demonstrated a powerful capability to outlive and develop regardless of returns in combination being mediocre (at the least there are only a few actually mega-wealthy mutual fund managers).

Considered one of our outdated favorite “makes you assume” info is that there are extra hedge fund managers than there are Taco Bell managers. It seems that it is a gross understatement. Through SigTech. we be taught that information supplier Preqin has for the primary time ever counted over 30,000 hedge funds globally, distributed thusly:

There are greater than 4 occasions as many hedge funds as there are Taco Bells (ca 7,200 it appears). Even final 12 months, when the common hedge fund misplaced 5.3 per cent in keeping with eVestment, Preqin tallied 938 new ones being launched.

In truth, there are extra hedge funds than there are Burger King retailers (over 18,700), workers on the Pentagon (24,000) and phrases in Animal Farm (assuming no prologue); and practically as many as there McDonald’s franchises (ca 35,000) and listed shares globally (about 43,000).

Anyway, if you wish to learn extra, right here is the complete report.