Chart Of The Day: Rise Of The “Dumb” Money

So as with all passive ETF posts, we have to put the word "dumb" in scare quotes. Why? Well, because it's not entirely clear whether these flows are actually so "dumb" after all. Indeed, in a market that only goes up, this "dumb" money is the "smartest" money there is. In fact, as we wrote in "There’s No Diversification: When This Ship Sinks, We’re All Going Down With It," hedge funds (and especially macro hedge funds YTD) have had a really, really tough time outperforming benchmarks that