Marks argues that market inefficiency stems from ignorance, but cumulative knowledge gradually eliminates it over time.
“Most inefficiency is the result of ignorance. But knowledge is cumulative. People learn more and more every year.”
Marks says direct lending stopped offering excess returns one to two years ago, delivering only adequate returns.
“I would say that as of a year or so, maybe two years ago, direct lending was, as you say, you use the term alpha, it was no longer special.”