We live in a world where fund managers can become superstars, even if their results are not that great at times. All that’s needed is a big personality and a publicized platform to make their views known from. There have been a number of managers that have gained notoriety in this way, ranging from Jim Cramer, to Martin Shkreli, to Bill Ackman. These people have all managed funds at one time or another, and they’ve all made headlines because of their outspoken personalities. However, it wasn’t their personalities alone that made them famous. They’ve also gained publicity for being in positions of authority when it came to the markets.
Right now, Bill Ackman is the only name on that list that currently manages a hedge fund. And his recent comments about a possible “index fund bubble” have been met with intense scrutiny. Bubbles usually mean bad things, but without knowing what Ackman meant, the comment is completely meaningless. (more…)