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A comment on The stockmarket is now run by computers, algorithms and passive managers. Parent comment

Re:The stockmarket is now run by computers, algorithms and p... by oh_sigh on Monday October 14, 2019 @06:11AM (#21246608)
Wouldn't the effect of, say 15 of your picks underperforming(good for you) be dwarfed by the other 480 ones performing the same? Couldn't you simulate this fund by buying s&p index fund and buying puts on your 15 picks?
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Re:The stockmarket is now run by computers, algorithms and p... by reascenda on Monday October 14, 2019 @06:27AM (#21246685)
It's actually the other way around, at least historically speaking. Typically a very small number of names account for the lions share of the index return.
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Re:The stockmarket is now run by computers, algorithms and p... by kasey_junk on Monday October 14, 2019 @08:17AM (#21247430)
Just to add an important note, this is true but it’s different names for different people depending on when they enter & exit the index.
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