Passive investment will hurt economic growth, Brandes says

Asset management veteran defends value investing as tried-and-tested strategy

financial-index
Trackers hurt economic growth, says Brandes

Investment veteran Charles Brandes vented his gripes about market exuberance for passive fund management at the London Value Investor Conference on May 20, calling the zeal for fund indexes “basically wrong”.
 
He told the audience: “I believe it is a big problem for economic growth, a big problem for owners of large amounts of capital and for the market to allocate capital correctly.”

Brandes, who founded his California-based advisory firm Brandes Investment Partners in 1974 on the value

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