A $13 Billion Hedge Fund Is Sounding The Alarm On One Of The Biggest Trends In Investing

rlevy@businessinsider.com (Rachael Levy), Business Insider
Tue, 07/25/2017 - 9:44am

Thomson Reuters Highfields Capital Management, a $13 billion hedge fund, has raised concerns about quant funds and passive investing in a letter to clients seen by Business Insider. Quants use algorithms to make investment bets while passive funds track market indices. Both are challenging active managers, the human-backed stock pickers that have traditionally dominated Wall Street. Quants in particular could worsen the next financial crisis, according to Highfields, an active manager. A $13 billion hedge fund that flies under the radar is sounding the alarm on one of the biggest investment trends – quants and passive investing. Highfields Capital Management flagged concerns about computer-driven trading in its second-quarter letter to investors this week, a copy of which was reviewed by Business Insider. Boston-based Highfields uses a fundamental, value investing strategy, and though it is one of the biggest hedge funds, doesn't often get much attention. Quants could effectively worsen the next financial crisis, Highfields' founder Jonathon S.

NEXT
Topics:  or    thomson reuters   wall   street   highfields capital management flagged   boston-based highfields uses   portfolio   october   quant   renaissance technologies   two sigma investments   hedge fund intelligence billion dollar club   balyasny asset management   baupost group   common   obamacare   trump   central   president   typically   the highfields capital iv lp   s&p   msci w0rld index   watch   harvard business school   a   highfields capital management   insider   quants   s    highfields   jacobson   biggest   trends   investing   billion hedge fund   funds   wrote   crisis   clients   investors   letter   risk   contributed   stock   hundreds   money   grew   billions   worsen   concerns   computer-driven   effectively   reform   sense   letters   
BING NEWS:
  • The IMF's chief is sounding the alarm, says the AI revolution is striking the job market 'like a tsunami'
    "We have very little time to get people ready for it, businesses ready for it," said IMF chief Kristalina Georgieva.
    05/14/2024 - 4:55 pm | View Link
  • Nigeria Plans a $10 Billion Diaspora Fund to Attract Dollar Inflows
    Nigeria is planning to set up a $10 billion diaspora fund to attract investment from its citizens living abroad to support critical sectors including infrastructure, health care and education to ...
    04/26/2024 - 12:32 am | View Link
  • US expected to provide $6 billion to fund long-term weapons contracts for Ukraine, officials say
    WASHINGTON (AP) — The U.S. is expected to announce Friday that it will provide about $6 billion in long-term military aid to Ukraine, U.S. officials said, adding that it will include much sought ...
    04/25/2024 - 7:58 am | View Link
  • KKR Raises $11 Billion for Its Newest Global Infrastructure Fund
    KKR & Co. raised $11 billion for its latest global infrastructure fund, more than half of its target, according to a person with knowledge of the matter. The alternative-asset manager began ...
    04/24/2024 - 7:44 am | View Link
  • $1.2 Billion Powerball Jackpot Is Now The Biggest Of 2024—Here’s What The Winner Could Take Home After Taxes
    The Powerball jackpot rose to $1.23 billion—the biggest lottery prize of the year so far—after no tickets matched the numbers drawn on Monday night, but the eventual winner will take home a ...
    04/3/2024 - 7:34 pm | View Link
  • More

 

NEXT
Welcome to Wopular!

Welcome to Wopular

Wopular is an online newspaper rack, giving you a summary view of the top headlines from the top news sites.

Senh Duong (Founder)
Wopular, MWB, RottenTomatoes

Subscribe to Wopular's RSS Fan Wopular on Facebook Follow Wopular on Twitter Follow Wopular on Google Plus

MoviesWithButter : Our Sister Site

Movies With Butter More Movie News

More Business News

  • Your guide to audio erotica apps and websites
    Mashable, Tuesday - 05/21/2024 - 10:50 AM

    If the videos on Pornhub don't do it for you, there's plenty of visual porn alternatives out there. But there's also an entire world separate from glossy high-production videos or homemade tapes: audio erotica. Interest in audio erotica has skyrocketed in the past few years, as have apps dedicated to it.

    More | Talk | Read It Later | Share
  • Get iOS 17.5.1 now to fix an iPhone bug that restores deleted photos
    Mashable, Tuesday - 05/21/2024 - 10:48 AM

    Apple has a fix for the iOS bug that was resurfacing deleted photos, including nudes. Following reports from iPhone and iPad users about the sudden reappearance of permanently deleted photos, Apple has issued an iOS 17.5.1 update to fix the bug. In the release notes, Apple said the update "provides important bug fixes and addresses a rare issue where photos that experienced database corruption could reappear in the Photos library even if they were deleted." SEE ALSO: Rumors of a sleeker iPhone circulate.

    More | Talk | Read It Later | Share
  • Where to pre-order the Sonos Ace headphones
    Mashable, Tuesday - 05/21/2024 - 10:41 AM

    PRE-ORDER NOW: Sonos has introduced their first pair of headphones, the Sonos Ace, which are available for preorder through Sonos as of May 21. The headphones cost $449 and will ship as soon as June 5. Where to preorder the Sonos Ace headphones Sonos Sonos Ace headphones $449 at Sonos Pre-order Now Sonos is breaking away from speakers — kind of.

    More | Talk | Read It Later | Share
  • Spruce up your space and score 30% off at The Home Depot
    Mashable, Tuesday - 05/21/2024 - 09:35 AM

    If you have big dreams of leveling up your digs for summer lounging but are tight on funds, you’re in luck. Not only can you nab up to 30% off rad furniture, kitchen stuff, and home décor through June 5 at The Home Depot, but you can also score an additional 10% off selected items May 23 through May 29 using code MEMORIAL10.

    More | Talk | Read It Later | Share
  • Sonos launches its first-ever headphones, the Sonos Ace
    Mashable, Tuesday - 05/21/2024 - 09:00 AM

    Sonos has finally ventured away from the realm of speakers. Not very far, though. On Tuesday, the company launched its first-ever pair of headphones, Sonos Ace. The headphones are exactly what you'd expect from Sonos: elegantly designed, with a focus on sound quality and connectivity with the rest of the company's ecosystem of devices. SEE ALSO: Sonos' new app has all your music on the Home screen For the sound part, we have to trust Sonos, as we haven't had a chance to try them out yet.

    More | Talk | Read It Later | Share
  • 'Paper Mario: The Thousand-Year Door' review: A straightforward and super-charming remake
    Mashable, Tuesday - 05/21/2024 - 09:00 AM

    Nintendo’s new Paper Mario: The Thousand-Year Door remake is unique in that it has a nearly unlimited capacity to make you smile, but it’ll similarly bum you the hell out. That has nothing to do with the quality of either the original GameCube game or its new gussied-up Switch remake, though.

    More | Talk | Read It Later | Share