Greenlight Capital’s David Einhorn was interviewed by our Leslie Picker at CNBC’s Delivering Alpha event Wednesday.
Einhorn spoke about the election results, inflation and some of his current stock picks (including CNH Industrial and Peloton Interactive), but soon returned to a familiar theme: the long, slow descent of value investing.
“It’s continuing to get worse,” the hedge fund manager told Picker. “We are in a secular destruction of the professional asset management community.”
As he has done several times before, Einhorn pointed a finger at passive, index investors: “The passive people, they don’t care what the value is.”
Markets are ‘broken’
In Einhorn’s estimation, markets are “broken,” repeating a claim he has repeatedly made this year.
“I view the markets as fundamentally broken,” Einhorn said back in February 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.”
Einhorn puts much of the blame on passive investing …