Active managers time is coming: Moore

In a new episode of Good Returns TV, Paul Moore, of PM Capital, said while passive investing dominated market flows at present, no one seemed to have considered that those investment decisions were being made without any reference to asset valuations.

“That’s crazy from an investment perspective,” he said.

“What typically happens is when you have the majority of flows going to one particular sector or asset category, the majority of investors usually have a bad experience from it.

“My thought process is that passive is getting to peak momentum. When you get that flow, it distorts asset prices... it should throw up more opportunities for active managers.