The Biggest Investment Mistake: Billionaire Hedge Fund Cliff Asness Reveals
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- Опубліковано 28 гру 2024
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Today's guest is Cliff Asness, co-founder, managing principal and Chief Investment Officer at AQR Capital Management.
In today’s episode, Cliff & I start by talking about some quotes he may or may not have said in the past. Then we kick around a bunch of topics. We talk about diversifying by both asset class and geography, the challenge of managing short-term expectations while keeping a long-term perspective, and how AQR is implementing AI and machine learning in their investment process.
To see links or read the transcript of the episode, visit us at mebfaber.com/2...
(0:15) - Welcome to our guest, Cliff Asness
(1:25) - Parsing Cliff’s real quotes from fake ones
(7:51) - Thoughts on bonds as a diversifier
(12:32) - Moving away from market-cap weighting
(18:22) - Managing client expectations
(28:51) - Alternative trend-following
(42:43) - Position resizing for alternative strategies
(47:01) - AQR implementing AI in their investment process
(50:41) - Cliff’s most controversial opinion
(56:34) - Cliff’s most memorable investment
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Cliff Asness is so fun to listened to. He is on my “have a beer with” list.
There are too many good lines from Uncle CLiff in this to count - absolute legend.
Awesome. Great duo to chat about investing.
I like how Cliff thinks and his general framework, but it's ridiculous to say the US just happened to be the best performing mkt and there's no reason for thay to continue.
The US economy fosters innovation, protects propriety rights and attracts risk takers much better than most countries. France doesn't, BRICS certainly don't, Japan a mixed bag. The SPY hasn't crushed the world bc of randomness that will washout in the ultra long term
Not to mention a government willing to LIE to further Protectionism. After all that yakking about "intellectual property rights", all the Internet companies copied Tic Tok's short video innovation, and then the government promptly bans Tik Tok from existence. Excellent innovation of Creative Protectionism. And do it with a straight face.
Agreed. Transparency. GAAP. Accountability. Enforcement. Market forces, liquidity for price discovery, and regulation. EU, China, Russia, Japan do not compare. Results are set up to exploit foreign investment with little or no recourse or worse (e.g. Hermitage, IP violations) in places like Russia and China. Economic and Govt stability are pluses in U.S. and the Federal system creates arbitrage and opportunities between states. All these reasons and more justify U.S. premium. The high returns in China, for instance, have been proven artificial and unsustainable in China.
@@aconsideredmomentWould you agree that at some lofty starting level of valuation , then the US will underperform?
Where are the numbers showing that if Buffet had invested in some Bonds, he would be better off? Show them.
Great episode... thank you!
3 years ago Self driving cars was going to revolutionise the world. Now forgotten and AI suffers the same problem. Self driving worked most of the time but not all of the time. Because of the exceptions you cant let it lose unsupervised in the real world. AI will suffer the same problem in the real world.
add Quantum computing, nanotech to the list
Just an update, self driving has been a great gimmick since the 1950's, climate change since late 60's, early 70's, all BS, all generate infinite revenue, you have been warned...
Segway scooters, 3D printing, etc.
Add 5G to the list, where the US abandoned Free Markets to hurt Huawei. Now who's talking about 5G? But the US is further on the slippery slope losing Capitalism.
I think there are driverless taxis already running in San Francisco? It's Tesla that isn't there yet.
Cliff why doesn't AQR give us 2x vol on your funds?
Always great!
Nice!
Petard = bomb. Hoist = blown up by.
Nice weight loss cliff!
Isn’t the SP500 diversified? 500 companies. Foreign markets have lagged American market through my lifetime.
How obsolete are you guys? You are stuck on S&P500 instead of NASDAQ. In today's technology era, it's Nasdaq and not the old companies. Haven't you heard of FAANG, MAG 7, NVIDIA, TESLA --- all tech. If you are too old to get tech, pay some young guys to work for you.