NEW YORK: David Einhorn put it bluntly. The valuation-be-damned boom in passive investing has “fundamentally broken” markets as it proceeds to crush the time-honoured hunt for cheap-looking stocks across Wall Street, year after year.
In the words of the renowned hedge-fund manager, the explosion in index-tracking flows is putting so many active investors out of business that the halcyon era of Warren Buffett and Benjamin Graham championing undervalued companies is no more.
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