🔹 Insight #01 – Index Funds Are Built for the Past
(Against the Grain)
“If your fund looks like the S&P500, you’re not investing. You’re imitating.”
Index funds were revolutionary — in the 1970s. They democratized investing when markets moved slowly and information spread over years. But today, in an exponential economy, they act more like blindfolds than vision.
Technology doesn’t grow linearly. It grows by power laws: a handful of companies create most of the value. The rest are dead weight. Index funds dilute the winners by mixing them with hundreds of laggards. That’s not strategy — that’s inertia.
At Altvalue Capital, we don’t buy yesterday’s winners and wait for the tide. We model tomorrow’s disruptors — chips that make AI possible, biotechs that extend human life, infrastructure that redefines the global economy.
The future isn’t evenly distributed. Neither are returns.
👉 Most investors chase the safety of averages. We choose the conviction of foresight.