The Biggest Investment Mistake: Billionaire Hedge Fund Cliff Asness Reveals

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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/2024/04/05/cliff...
(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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[@bubbaburke]

Cliff Asness is so fun to listened to. He is on my “have a beer with” list.

[@TheLongVol]

There are too many good lines from Uncle CLiff in this to count - absolute legend.

[@stingray1381]

Awesome. Great duo to chat about investing.

[@stevemerril3086]

Great episode... thank you!

[@randalljmoore]

Always great!

[@ralphsimpson4593]

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.

[@thedananti]

add Quantum computing, nanotech to the list

[@_ERAZ_]

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...

[@rokyericksonroks]

Segway scooters, 3D printing, etc.

[@danieldounine3690]

Nice!

[@littlebigfis]

Cliff why doesn't AQR give us 2x vol on your funds?

[@jhoke3288]

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

[@bleacherz7503]

Nice weight loss cliff!