The hedge fund 'bubble,' while not popping, is no longer inflating.

We have come to realize that a large hedge fund like Quantum Fund is no longer the best way to manage money, ... Markets have become extremely unstable and historical measures of value at risk no longer apply.

I can virtually guarantee at today's value levels, no matter what, over multiple years they will rise. The world's greatest companies are trading at below- average multiples when they're wildly above-average companies.

Investors see nothing but sunny skies as far as the eye can see and therefore do not care one iota about risk. They are pursuing returns regardless of risk, and therefore the most speculative companies and investment classes are doing very well.

There's a bias, because of the bubble-popping, to be negative no matter what after we've had a good rally, because you don't want to be accused of being too optimistic.

We saw Wendy's was languishing at $40, but when we saw Pershing Square's proposal, it was clear that the shares were worth $65.