Einhorn Says Markets ‘Fundamentally Broken’ By Passive, Quant Investing
- Greenlight Capital adapted as investors ignored value stocks
- Einhorn also said the SEC stopped policing corporate behavior
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Greenlight Capital was forced to shift its strategy as the growth of passive investing and algorithmic trading transformed markets, founder David Einhorn said.
“I view the markets as fundamentally broken,” Einhorn, 55, said on Barry Ritholtz’s Masters in Business podcast. “Passive investors have no opinion about value. They’re going to assume everybody else has done the work.”