"David Einhorn: Passive Investors and Quants Have Fundamentally Broken the Stock Market"

David Einhorn, founder of Greenlight Capital, believes that passive and algorithmic trading have fundamentally broken the market, making it significantly harder for value investors to find undervalued stocks. With fewer traders paying attention to fundamental merits and instead chasing after price, overvalued equities are gaining the most. Einhorn expressed frustration at the shift away from actively managed investment and the pressure on stocks to pay out, as well as the impact of algorithmic machine trading on stock prices. Despite Greenlight's 22.1% gain last year, Einhorn highlighted limitations due to losses on the fund's short positions.