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Peak Passive

Peak Passive – Unintended Consequences of Passive Investing & Implications for Investors

Tuesday, January 16 | 8:00 AM – 1:00 PM

TO ATTEND Members: $20 | Nonmembers: $55

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LIVESTREAM ACCESS FREE | Available to Members Only

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MATHIAS STROHFELDT, CFA, VP, Oppenheimer Funds; Vice Chair, Value Investing Group

8:30am – KEYNOTE “The Hidden Costs of Passive Investing”

David Winters, CFA, CEO & PM, Wintergreen Funds


Moderated by David Winters, CFA, CEO & PM, Wintergreen Funds

Jim Rowley, Head of Active & Passive Portfolio Mgmt., Vanguard Martin Small, Managing Director, BlackRock; Head of US iShares

10:25 – 10:40am: NETWORKING BREAK

10:40am – THE HIDDEN COST OF INDEXING; S&P INDEX EFFECT Diane Garnick, Managing Director, Chief Income Strategist, TIAA

Index managers are selected based producing the lowest possible tracking error, however, when many managers are buying/(selling) securities at the same time, the impact on a stock’s price can create significant market variations.  Learn more about the disadvantages of indexing (or opportunities for active managers), that changes to the composition of the indexes can create.

11:25am – SPEAKER

Murray Stahl, Chairman & CEO, CIO Horizon Kinetics

12:10 – 12:20pm: NETWORKING BREAK

12:20 – SPEAKER “Shooting the Messenger: What’s Behind the Rise of Passive?”

Craig Lazzara, CFA, Managing Director & Global Head of Index Investment Strategy S&P Global

1:00 – 1:05pm: SPONSOR REMARKS

James Russel Kelly, Director, Gabelli Center for Global Security Analysis & Senior Lecturer in Finance, Fordham University


Mathias Strohfeldt, CFA, VP, Oppenheimer Funds; Vice Chair, Value Investing Group


Peak Passive – unintended consequences of passive investing and implications for investors

Tremendous growth of passive investing over the last few years has raised some serious concerns about whether the trend is sustainable and what the broader risk to the market is, as market capitalization dedicated to passive strategies rises inexorably toward the 40% mark, or ‘Peak Passive’. Therefore, the Value Investing group at CFA Society New York is hosting an event titled ‘Peak Passive – unintended consequences of passive investing and implications for value investors’, to explore this topic further.

The discussion will center on the market impact of the high-water mark of the passive strategies and contrast to previous time periods of the occurrence of the phenomenon (read Nifty 50, 2000). We would also like to discuss the implications of ‘peak passive’ for bottom up investors, especially exploring the questions if indexing is prone to herding and thereby could create market inefficiencies. Finally, we would also like to focus on the true cost of indexing (hidden cost of index funds investing in companies with share options, causing dilution) and the implications for overall hidden fees associated with such strategies.

Since this topic has also garnered a lot media attention, we have brought together a mix of acclaimed industry professionals as speakers from various sides of the debate. The event will be addressed to the members of CFA Society NY, as well as investment professionals and CFA charter holders in the New York area.

This program will:

  • Discuss the impact of 30% total US market cap in passive strategies on bottom up stock investors (market efficiency)
  • Compare and contrast to previous time periods (Nifty 50, 2000)
  • Discuss the true cost of indexing (hidden cost of index funds investing in companies with share options causing dilution)
  • Discuss how to design a successful investing strategy to benefit from possible market inefficiencies or how to avoid potential pitfalls created by the large share of passive strategies

Learning Outcome Statements

  • Understand the possible distortions of index/passive investing on markets, sectors and individual stocks
  • Understand the growth drivers behind passive investing and how it might change when growth slows or reverses
  • Learn about previous market environments where similar trends occurred
  • Learn about how different investors have reacted to the increase in passive investing by adapting their investment strategies

Register to Attend
Register for Livestream
Visit the Value Investing Group Homepage


Tuesday, Jan. 16

8:00 am-1:00 pm


CFA NY Conference Center 1540 Broadway 45th St. Entrance Suite 1010


To Attend

Members: $20 Nonmembers: $55

Visit the Value Investing Group Homepage
Become a CFA Society New York Member

Event Sponsor

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