The trouble with Platinum Asset Management Ltd (ASXC:PTM)
I sold Platinum Asset Management Ltd (ASX:PTM) yesterday. I changed my mind about its prospects of generating net inflows in the future. Although Platinum has previously recovered from a sustained period of underperformance during the dotcom boom, I don't think the situation today is the same. As Mike Green has argued, passive investing is here to stay. What's more it is becoming increasingly dominant and it will be extremely difficult for long/short funds to outperform whilst this is the case. I made a small profit on the trade.