Patti Domm on the decline of active investing

In 2000, pensions had about 80% of their equity allocation in active public equities.  That has shrunk to about a third of overall equity allocation, with holdings in private equity and passive investments also at about a third each, [BofA Global Research strategist Savita] Subramanian says.

The mutual fund world has also seen big changes.  The number of funds in U.S., long-only, large-cap funds has dropped by 40% since 2013, found BofA Global Research.

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The average number of sell-side analysts covering an S&P 500 stock has fallen by 15% from a peak at the start of 1990, according to BofA.

~ Patti Domm, "Markets Aren't as Efficient as They Seem. Look Closer.," Barron's, February 17, 2024