Summary
Greenlight Capital founder David Einhorn believes that the growth of passive investing and algorithmic trading has fundamentally broken the markets. He argues that passive investors have no opinion about value and simply assume that others have done the work. This has forced Greenlight Capital to shift its strategy.
Key Points
1. Greenlight Capital had to change its strategy due to the rise of passive investing and algorithmic trading, which transformed the markets.
2. Founder David Einhorn believes that the markets are fundamentally broken, as passive investors have no opinion about value and rely on others to do the work.
3. The growth of passive investing has forced Greenlight Capital to adapt and find new ways to navigate the changing market dynamics.