One of the major themes I’ve been operating under for the past several years posits that, due to passive investing’s increasing popularity, opportunities outside of the major indexes should become both more prevalent and more attractive. In many respects, acting on this thesis has served me well. Recently, though, traditional passive investing has become a bit less popular as many investors have eagerly embraced alternatives or variations such as ESG and its most speculative elements like green energy and electric vehicles. Now there are a myriad different ways to define ESG but, in practice, it has resulted in portfolios with a higher concentration in popular sectors like tech and an underweight of unpopular sectors like the traditional energy sector. Read more.
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