The S&P 500, considered to be the a leading indicator of U.S. equities, is flawed, according to one of the U.K.'s most successful hedge fund managers, who said that investors would be better off choosing stocks at random.
With $25.5 billion in assets under management and 297 employees, David Harding's Winton Capital is the world's 14th-largest hedge fund firm, according to January data from investing publication Alpha magazine. Often dubbed as the "Wizard of Winton," Harding is known in the industry for profitable long term bets on oil and gold, as well as making hay during the global financial crash of 2008.
With a slew of alternative investing ideas up his sleeve, he told CNBC on Friday that his skepticism of the S&P 500 was borne from criticism by others of his own trading systems and methods.
"I kind of exploded in anger, I mean not literally but in my head," he said.
"The S&P 500 is a trading system – the S&P 500 is a set of rules for buying and selling stocks. It's a trading system, and by the way it's not a very good one."