Savita Subramanian on the brain drain from active equity investing

My thesis is we've seen a brain drain from active public equity investors to private equity or passive.  That public equity component has been squeezed out by either reaching for growth in private equity - and that's where people are looking for their long-term fundamental exposure - or they're getting low-cost and moving to passive index funds for exposure to the S&P 500.

I think there are massive inefficiencies in the public equity market right now that haven't necessarily been sussed out by expert stockpickers.

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