Paul Singer Says Passive Investing Is ‘Devouring Capitalism’

  • Hedge fund manager says index products harm growth creation
  • Singer’s main hedge fund gained 3.5% in the first half

Billionaire Paul Singer is warning of a growing and menacing threat: passive investing. Bloomberg Intelligence's Eric Balchunas has more on 'Bloomberg Markets.' (Source: Bloomberg)

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Billionaire Paul Singer is warning of a growing and menacing threat: passive investing.

“Passive investing is in danger of devouring capitalism,” Singer wrote in his firm’s second-quarter letter dated July 27. “What may have been a clever idea in its infancy has grown into a blob which is destructive to the growth-creating and consensus-building prospects of free market capitalism.”