The Disruptor
Contrarian and drawn to the edge; challenges the settled answer.
Cliff Asness, AQR Capital Management co-founder and CIO, wears The Disruptor honestly. His career-defining move was transplanting academic factor models across entirely new asset classes, treating countries as tradable stocks before practitioners had systematised the idea. Yet his insistence on out-of-sample validation is what separates bold thinking from recklessness.
“I know for a fact because I looked at it recently that I've not seen 5%, 6% inflation in my career. I do think, you know, I'd be happy to share with you. Quants have some disadvantages. There's less we can know about any one individual situation than a more discretionary manager. But we do have one advantage.”
“Go through them. Stock options and the lying liars who don't want to or won't expense them, I forget the exact title. It was a play on an Al Franken book back in the time. I think Rush Limbaugh was the villain in his title. Was particularly post tech bubble. There's been this issue.”
“If you had asked me what will make a great Investor, quantitative, in my sake, but in general, I would have probably given you an arrogant answer that, oh, just being smarter than other people, being smarter than other investors, then the market as a whole.”
“Now, this is actually much more normal. Historically, When junkier profits Because the cheap stocks are often unprofitable. So, when the profitability factor, if you will, is doing well, it has at least a decent negative correlation. It's been stronger in the U.S. than globally, but it's negatively correlated value.”
Masters in Business: “Cliff Asness on Celebrating 25 Years With AQR”
LISTEN AT THE SOURCE ↗THE RECORD IS CHECKABLE