The man who created the last index
This note is a work of fiction that addresses the role of indexation and passive management in investing today. It covers the origins of indexation and how the role that an index is expected to perform has now changed. The rapid growth in the number of indices presents a problem for investors in that it becomes harder to articulate what is meant by a passive investment. This leads to a discussion of the work of Borges and Balzac and what it means for investing.
Via Matt Levine.