David Einhorn of Greenlight Capital claims the market is "fundamentally broken" due to passive investing and algorithmic trading, causing price overvalue and challenging value investing.

Hedge fund titan David Einhorn has stated that markets are "fundamentally broken" due to the rise of passive investing. In an interview with Barry Ritholtz on his "Masters in Business" podcast, Einhorn argued that the shift away from active management has made value investing significantly more difficult, with overvalued stocks now more likely to succeed. He noted that the value industry has been "annihilated" and that value is no longer a consideration for most investment money, as algorithmic trading and passive investments prioritize price over fundamental merits.

February 08, 2024
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