GMO is a global investment management firm which was founded in North America in 1977 and now has offices in Europe and Asia-Pacific. Two of the firm's asset allocation team, US-based Matt Kadnar and European-based James Montier collaborated on writing this article on passive investing.
In their view, as more and more investors turn to passively-managed mandates, the opportunity set for active management increases. Secondly, they believe that a decision to allocate to a passive index ignores the most important determinant of long-term returns: valuation. To read more click here.