Sui Live 2026: The Future of Agentic Finance

The Risks and Market Distortions of Passive Investing

This episode discusses sources that analyze the profound migration of capital from active fund management to passive investment strategies, such as ETFs and index funds. The New Constructs report warns that this trend has created overcrowded trades, where massive inflows into a few dominant tech stocks result in market inefficiencies and inflated valuations. Meanwhile, the Federal Reserve discussion paper examines how this shift impacts financial stability, noting that while passive investing may reduce certain redemption risks, it increases industry concentration and can amplify market volatility. Both documents suggest that the decline of fundamental research creates a "Danger Zone" for passive investors while simultaneously opening new alpha opportunities for disciplined active managers. Ultimately, the authors argue that the unthinking allocation of capital based on index weightings rather than company health poses systemic risks to market liquidity and long-term returns. Here is a bibliography of the 10 sources the episode considers, ordered alphabetically by the author's last name or publisher: * Anadu, K., Kruttli, M., McCabe, P., & Osambela, E. (2020, May 15). The Shift from Active to Passive Investing: Potential Risks to Financial Stability? Finance and Economics Discussion Series 2018-060r1, Board of Governors of the Federal Reserve System. * Azar, J., Schmalz, M. C., & Tecu, I. (2017, March). Anti-Competitive Effects of Common Ownership. IESE Business School – University of Navarra, Working Paper WP-1169-E. * Fang, L., Jiang, H., Sun, Z., Yin, X., & Zheng, L. (2023, November 15). Limits to Diversification: Passive Investing and Market Risk. * Gerlach, D. (2025, August 11). The Detrimental Impact of Index Funds and ETFs on Small-Cap Stocks. myICLUB Blog. * Leithner, C. (2023, October 23). Index funds' key flaws – and how we overcome them. * Lund, D. S. (2018). The Case Against Passive Shareholder Voting. Journal of Corporation Law, 43(3), 494-535. * New Constructs / Trainer, D. (2020, May 11). The Hidden Dangers of Passive Investing. New Constructs. * Pan, K., & Zeng, Y. (2017, June). ETF Arbitrage under Liquidity Mismatch. * QuantPedia. How Does the Passive Investing Impact Market Risk? (Note: The provided source text currently only displays a "429 Too Many Requests" error, making further publication details unavailable). * Reddit (User: joe4942). The passive investing bubble? Burry might be right. Posted in the r/Burryology subreddit. Episode Note This episode draws on the sources listed above and incorporates AI-assisted research synthesis. All content has been reviewed and curated by the host. It is intended for educational purposes only and does not constitute investment or financial advice.

The Inside Ownership Index & ETF

What does "skin in the game" actually look like inside an index? Most benchmarks weight companies by free-float-adjusted market capitalization which is a methodology that, by design, strips out insider-held shares. Haren Bhakta's Inside Ownership Index does close to the opposite, weighting on the very stakes the standard approach removes.   In this conversation, Haren walks through how the IO 100 Index, calculated and published by S&P Dow Jones Indices as a custom index service, was built, what makes insider ownership a legitimate factor rather than a marketing narrative, and how the alignment effect holds up against the standard controls for size, value, and quality. We also explore how investors are currently accessing the methodology (separately managed accounts now, with an ETF pathway on the horizon) and what the broader move toward incentive-aligned investing means for governance, allocator decisions, and the next generation of index construction.   This is the first live guest episode of Expanding Frontiers, and a fitting one, with a conversation that sits squarely at the intersection of factor research, governance, and institutional credibility that the show is built to explore.   About the Guest   Haren Bhakta, CFA, is the Founder and CEO of Inside Ownership Index, a company that constructs equity indices weighted by insider-held share value rather than free-float market cap. The IO 100 Index (Inside Ownership's flagship benchmark) is calculated and published by S&P Dow Jones Indices, with sector-specific variants spanning Financials, Healthcare, Technology, Industrials, Consumer, and Energy. Haren's work centers on the thesis that companies whose leaders hold meaningful personal stakes outperform over time, and that ownership-based benchmarks can complement traditional cap-weighted approaches in institutional portfolios.   Website: https://insideownership.com [https://insideownership.com]   ABOUT THE SHOW Expanding Frontiers is hosted by Kathryn Wilkens, PhD, CAIA, an alternative investments educator at Rutgers University and founder of Pearl Quest LLC. New episodes Wednesdays.   Episode Note Tis content is intended for educational purposes only and does not constitute investment or financial advice.

Private Equity 2026: NAV Lending and Secondaries Market Trends

This episode discusses private equity and venture capital sectors, examining their fundamental structures and current market challenges. They describe the investment ecosystem, where institutional limited partners commit capital to general partners who drive value through operational improvements, financial engineering, and active governance. Current reports highlight a shift in strategy necessitated by ahigh-interest-rate environment, forcing firms to prioritize organic revenue growth and margin expansion over traditional leverage-based returns. Furthermore, the data indicates a recent decline in dry powder and a slowdown in fundraising caused by delayed exits and a widening gap between buyer and seller valuations. Overall, the texts emphasize that successful navigation of today's market requires deep pre-investment analysis, technological due diligence, and a rigorous focus on long-term asset value rather than quick multiple expansion. References * (2025–2026). AB NAVigator. * Bain & Company. (2026). Private Equity Outlook 2026: Gaining Traction. * BDO USA. (2026). Private Equity's Guide to a Sustained High-Rate Environment. * Copia Wealth Studios. (2025/2026). GP vs. LP-Led Secondaries: Taking Control in 2025/2026. * Houlihan Lokey. (2026). LP Compass Secondary Investor Survey. * (2026). Pulse of Private Equity Q4'25: Global Private Equity Activity Analysis. * McKinsey & Company. (2026). Global Private Markets Report 2026. * McKinsey & Company. (2026). 2026 M&A Trends: Navigating a Rapidly Rebounding Market. * SS&C Intralinks. (2026). 2026 Global Private Capital Fundraising Report. * Third Bridge. (2026). PE Due Diligence with AI: The Complete Workflow (2026 Guide). * Wilkens, Kathryn, (2026) “Chapter 2. Private Equity” in Alternative Investments: Expanding Frontiers. * With Intelligence. (2026). Private Equity Outlook 2026: A Durable Recovery. Episode Note This episode draws on the sources listed above and incorporates AI-assisted research synthesis. All content has been reviewed and curated by the host. It is intended for educational purposes only and does not constitute investment or financial advice.

Beyond the Buyout: Private Equity and the American System

This episode discusses the profound impact of private equity on American society. It is based on a talk given at a Stanford Graduate School of Business event featuring journalist Megan Greenwell. She details how the industry’s leveraged buyout model often prioritizes short-term financial gains over the long-term health of essential sectors like healthcare, housing, and local media. Greenwell argues that the current system creates a divorce of incentives, allowing firms to profit even when their acquired companies face bankruptcy or liquidation. Throughout the discussion, she uses examples like Toys R Us and rural hospitals to illustrate the negative ripple effects on workers and local communities. While acknowledging that some small-scale deals can be beneficial, she advocates for structural reforms, such as requiring firms to share responsibility for the debt they impose on businesses. Ultimately, the source highlights a growing tension between traditional free-market capitalism and a finance-driven model that often leaves vulnerable populations at risk. References “Private Equity and the Future of American Capitalism” Corporations and Society Initiative (CASI) at Stanford Graduate School of Business, May 18, 2026. Available on YouTube: https://www.youtube.com/watch?v=kpyge0vaM6E [https://www.youtube.com/watch?v=kpyge0vaM6E] Episode Note This episode draws on the sources listed above and incorporates AI-assisted research synthesis. All content has been reviewed and curated by the host. It is intended for educational purposes only and does not constitute investment or financial advice.

Sui Live 2026: The Future of Agentic Finance

This episode discusses a major financial technology event showcasing the Sui blockchain as the foundational infrastructure for a future dominated by AI agents. Industry leaders explain how Sui’s unique architecture, featuring parallel execution and an object-centric model, enables high-speed, programmable transactions that traditional systems cannot support. Key announcements include the launch of Sui Dollar, which allows for zero-cost stablecoin movement, and Sui Card, a tool designed to integrate digital assets into real-world commerce. The speakers also introduce Hashi, a decentralized protocol intended to unlock Bitcoin liquidity for use within decentralized finance. Ultimately, the sources frame the network as a highly scalable coordination layer capable of powering a global "machine economy." References Sui Live: The Future of Finance | Miami 2026 | Including Adeniyi Abiodun, Raoul Pal, Guy Wuollet on Real Vision YouTube channel at https://www.youtube.com/watch?v=Y7D8ezalAuY Episode Note This episode draws on the sources listed above and incorporates AI-assisted research synthesis. All content has been reviewed and curated by the host. It is intended for educational purposes only and does not constitute investment or financial advice.