The man behind a $6 billion hedge fund says 'very dangerous investors' have one thing in common

Ricky Sandler, the founder of $6 billion long/short equity hedge fund Eminence Capital, likes to hire folks with the "desire to win above the desire to be right."

Sandler spoke on Thursday at The University of Texas Investment Management Company 20th anniversary event in Austin.

His fund takes a bottom up, fundamental approach to investing in equities. There have been some big changes in the market such as the growth of ETFs, the rise of quants, and the growth of investing that's "a little less micro in nature," he noted.

"For us, it is no longer good enough to have a quality business and a cheap stock and just think that's it's worth more," Sandler said.

"One of the biggest skill sets that I find in people, and this is maybe a softer skill set, it's a desire to win above the desire to be right."

Sandler said that there are people in the hedge fund industry who are extraordinarily intellectual, excellent at debating, and can sound extremely convincing.

"They are often very dangerous investors," he said. "So, we love competitive people. They want to win. They want to figure it out. They are willing to admit when they are wrong, and frankly when it's not a game that is worth playing. I think that's a difference I see today."

See, it's OK to admit when you're wrong. That's called humility.