Highfields Capital Warns About Quants, Complacency

In its latest letter $13 billion hedge fund Highfields Capital Management warned about the growing influence of quant funds and market complacency. 

We can't prove this, but we are convinced that 'quant' funds, which have attracted hundreds of billions of dollars in the last few years and a significant portion of which use leverage, and whose models and various strategies are largely based on price action and correlations extracted from the reasonably recent past when volatility has been low (largely of their own making), have contributed mightily to the illusion that market risk is low.

Business Insider article on the Highfields Capital letter:

Highfields Capital Warns About Quants, Complacency