YouSaid · the spoken record

Andrew Lo

lines on the record: 74
first: 2017-04-21
most recent: 2017-04-21
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“I wish I understood just how important human emotion is in financial decisions. I didn't really appreciate enough that logic was not enough in determining how people actually behave.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I would say that finance is one of the most exciting fields to go into, but to keep in mind that finance is really a means to an end, not an end unto itself. And I think very often we lose sight of that, even I lose sight of that because of the research that I do, but over the course of the last few years, I've begun to see, number one, how finance can be perverted in ways that it was never intended. But at the same time, I also see that finance can be used to achieve some of the greatest challenges that are facing mankind, including things like dealing with cancer, Alzheimer's, energy, all sorts of societal challenges that require large amounts of financing. So I think that this is a great field to be in and it's an important one to focus on.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, at this point, my kids are still my number one focus. My younger son is in high school. My oldest son has just graduated from college, so spending time with them has been my best source of relaxation.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“For physical fitness, I'm an avid squash fan. I'm not a very good squash player, but what I lack in skill, I make up for an enthusiasm.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, for mental fitness, obviously doing research and being challenged by my students, I work with a lot of undergraduate and graduate students. And at MIT, these students are extraordinary. So that keeps me mentally fit.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, one form of failure was when Craig and McKinley and I failed to realize how much of a sacred cow we were attacking when we started presenting our work on the random walk hypothesis. And I think that's a broader theme, which is that one has to be careful about the fact that other people have very strong narratives and whether the narrative is passive investments or only active investments. We have to understand where investors are coming from. We have to understand the lens through which they're looking at the financial landscape. And we have to try to be realistic and develop products and services that take into account those lenses as opposed to trying to force investors into particular ways of thinking that they're simply not equipped to do.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think the process of convergence between hedge funds and mutual funds is one trend that we have to watch because of a combination of competition and innovation and the demand from investors looking for more active strategies and higher yield, we're going to see a greater retailization of hedge fund strategies. That's both an opportunity as well as a potential source of financial instability. Second is the role of financial technology or fintech, as we call it, the fact that investors are now engaging in robo advising services means that they're going to be subject to, again, greater algorithmic shifts as we see more and more sophisticated robo advisors, just like we have driverless cars at some point we may have driverless portfolios. And that's, again, both a good thing and a bad thing because it can create unintended consequences.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“To start thinking more adaptively about financial regulation, we have to think about the system not going from one extreme to the other, but rather changing in terms of its regulatory approach as markets heat up and as they cool down.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, financial regulation is also an adaptive process, and that was one of the things that I really learned from watching the process of Dodd Frank. You know, Dodd-Frank isn't perfect, but it actually has done some very important things in changing the way we think about financial regulation. For example, creating the Office of Financial Research to collect data and to monitor the stability of the financial system. So I think that we've gotten a long ways away from the old days of the wild, wild west, but at the same time, I don't think that we're focusing on financial regulation from a systemic perspective. You know, we do have the financial stability oversight council, which is this college of financial regulators and the U.S. Treasury Secretary as the head. But that college isn't really a single regulatory body focused specifically on financial stability. It doesn't necessarily have regulatory authority that cuts across all the different jurisdictions of financial regulation. So I think we have to have...”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think one of the most significant changes is the much bigger role that technology has played in our industry. It's really transformed the financial system. And I think it's both bad and good. I think that obviously technology has allowed us to engage in all sorts of financial transactions and services that we really wouldn't have been able to undertake. But at the same time, I think it's also creates some vulnerabilities that we don't fully understand. The financial system is a lot more complex now than it ever was. And I'm not sure that we really think about the system as a system. You know, we have regulators that focus on mutual funds and futures markets and banks, but we don't have any regulator focused on the stability of the financial system as a whole. And I think that's really an accident waiting to happen.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“His current book, Half Earth, that describes a new way of thinking about conservation and environmental impact. It's really fascinating. It's a very important book that I'm hoping more and more people will read.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I do. That's my guilty pleasure. I love books. Well, you know, E.O. Wilson, the famous evolutionary biologist, has been a longtime hero of mine, not just because of his theories and his impact and sociobiology, but because he writes like an angel. It's just extraordinary. Reading his work is just such a pleasure.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you know, the first book that really got me thinking along the lines of finance and economics was Heilbronner's Worldly Philosophers. I loved that book. And then after that, of course, Burton Malkill's random walk down Wall Street. I mean, he writes so clearly and makes finance come alive that that just got me really excited about the stock market and thinking about all of these financial issues.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's right. I'm in great company there. Very interesting idea of psycho history, a fictitious branch of mathematics that allow you to predict human behavior using the law of large numbers and the central limit theorem. But I loved Arthur C. Clarke and more recently Orson Scott Card and Ender's game, yeah, the whole Ender series Speaker for the Dead. Just fascinating ideas. It really allowed you to let your imagination run wild.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, you know, I'm a big science fiction fan. And in a way, I think that's what really got me to start thinking along the lines of economics and finance. It was Isaac Asmoff's foundation trilogy in high school.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Oh, there are a whole host of them. Obviously Jim Simons at Renaissance Technologies, David Shaw at DE Shaw. These are the first quants that really demonstrated that using mathematical models can actually add value. But then there's Warren Buffett and George Soros who have made their money in very different ways using qualitative aspects of the business world. And it demonstrates that there's more than one way to skin a cat. And it really gave me some fascinating ideas about how to integrate the two worlds.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And then in college, I had very fortunate to be able to have Saul Levmoore for my Econ 101 class. And my advisor, Sharon Oster, was incredibly inspirational. And then in grad school, Andy Abel, my thesis advisor, Jerry Housman, another thesis advisor, and of course, Bob Merton, the inspirational finance professor that really got me to start thinking about a career in finance. So all of these individuals are just extraordinarily important in giving me the boost that got me to where I am today.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I was very lucky in having a whole series of extraordinary teachers. I grew up in New York City and benefited from the New York City public school system, the best education that money didn't have to buy. I had a great third grade teacher, Mrs. Barbara Ficolora, who really believed in me and gave me the runway to develop intellectually. Then in high school, I went to the Bronx High School of Science, the best education that I've gotten even to date. I'm just amazed by the quality of the faculty there. And Mrs. Henriette Amazon, Mr. Milton Copelman, fantastic teachers, very supportive, and really gave me the thirst of knowledge that I still benefit from today.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, that's exactly right. Ian Tattersoll at the American Museum of Natural History has some wonderful writings about how Homo sapiens came to be and how we compete. That allowed us to cooperate. We developed language and engaged in all sorts of activities and toolmaking that allowed us to dominate our civilization. The problem is that we haven't yet developed all of the necessary tools to dominate the financial landscape that we live in today. It's no longer the case that we have to live by our wits and survive with physical threats. We have to actually think about surviving financial threats. And so we're still a work in progress and we have to worry about how the various different evolutionary mechanisms will interact with modern life.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you know, Homo sapiens has been in the current form for about 100,000 years. And what that means is that the adaptations that are with us today were really the kind of features that were most useful for the Neolithic ice age. And if you take a look at what we're dealing with, though, in modern society, things like financial markets are much, much newer innovation. And so our decision-making capabilities are not ideally adapted to that environment. And so it's not surprising that what helps us on the planes of the African savannah don't necessarily help us on the floor of the New York Stock Exchange. We have to develop new capabilities that aren't quite there yet. And so periodically, we're going to be left with some very poor reactions to financial market threats.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It did, and in fact, that illustrates the kind of adaptive nature of academics. It's very competitive. You come up with innovations, and if you survive over time, then your theory ultimately takes over.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“We did a few months later. He wrote back saying that he had apparently checked our results and in fact agreed that the data are definitely inconsistent with the findings and how interesting. So we did come to terms and I think a number of academics went back to their home institutions and replicated our results.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, it turned out unbeknownst to us and this discussant, this was exactly the time when statistical arbitrage came into its own and when David Shaw was engaged in what would then become a multibillion dollar hedge fund and many, many billions of dollars of profits for investors.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. We were looking at weekly stock returns and we found short-term momentum in the data. And no matter which way we sliced it, we couldn't get rid of this kind of anomaly. And so we presented the results as we found them. And our discussant, who is a very distinguished academic economist, reviewed our results and said, the theory is very interesting, but the numbers have to be wrong because this would imply way too many profits for Wall Street traders. And so we were really taken aback by that. It was the first time that we sort of got hit with the rude awakening that you could actually get publicly shamed for your research.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“That was a very memorable event. November 1986, it was the first presentation that I'd given in an academic forum among my peers. I was an assistant professor. I just graduated a couple of years ago from graduate school, and Craig McKinley, a colleague of mine at the Wharton School, and I, we'd written a paper rejecting the random walk hypothesis.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you know, now we're veering into a topic on the sociology of science, and I'm not sure I'm an expert on, but there is a definite cultural element to our field. We get attached to certain ideas and theories, and we start thinking along these lines. I call that narrative. We all have our own narrative of what's going on. And the fact is that unless we take our narrative and try to match them to the data, we'll always be caught up in our own hypotheses and theories. But when you start confronting these theories with data and you see that they don't fit, then at some point you're going to actually have to develop better theories. And that's really what I experienced over time.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think it was Max Planck who originally said that. Yeah. And then Paul Samuelson paraphrased it to say that science progresses funeral by funeral. And, you know, that's a particularly morbid kind of an adage. But I think there's a certain element of truth to it. And it has to do with the fact that, you know, academics become very attached to their ideas. And so at some point, in order to challenge an existing theory, you really need to develop a competing alternative that really provides some compelling predictions.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly, or the way I would put it is that there really aren't any bad ideas. We really have approximations to reality, and we try to improve on those approximations one after the other. So version 1.0 is a starting point, but then you got to get to 1.1 and then eventually 2.0. So we're trying to come up with theories that can actually beat existing theories in order to move these ideas forward.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Not at all because I think that if you take a look at the size of hedge funds and the ability for them to trade and take advantage of market opportunities, despite the fact that they don't have nearly the size of assets as the passive index funds, they can move markets much more rapidly and in greater depth on any given occasion”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, in fact, I think that it might work even better if everybody weren't actively trading because when you have everybody competing to make slight margin, then any small bump in the road can quickly escalate into a financial crisis. You want to have a majority of the market participants focusing on passive long-term investments in order to maintain market stability.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, it looks like from the experiments that we conducted, if you've got very well-funded traders. Only a few percentage points of markets need to be informed trading in order to make them very efficient. Really?”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“same time. And if those declines are severe enough to trigger our emotional reaction, we're all going to be freaking out at the same time. So inadvertently, these kinds of index fund holdings could actually create more systematic risk in the financial system. It's not to say that they don't add value. Absolutely they do, and they're an incredible important part of the financial ecosystem. But because they're so big, they can actually create these kinds of ripple effects that we're only now seeing.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's a great question. And it's funny because that's a question that I would have expected people would have asked a long time ago, just the same way that people ask how much capacity does a hedgeman have. It's only recently that people have started asking the question about index funds. So first of all, index funds are an unqualified success. It's clear that they really benefit investors in the long run by reducing costs and giving them diversification. However, there is one aspect that we have to think about, and that's something that the adaptive markets hypothesis points to, which is that when everybody starts investing in the same vehicle, that means that there's going to be a hardwired correlation that we create among various different investors experiences. Because now, if we've got lots of people investing in the same index fund, if and when that index fund declines, we're all going to be facing those declines at the same time.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“There's no doubt there's going to be pressure on hedge fund fees because of all these various different lower cost vehicles. In fact, Jack Bogel's principal, the cost matter hypothesis, I think really... Summarizes it all. I think we have to be careful about that trend, but at the same time, investors are also looking for new investments. Great returns beyond fees, they're going to actually be able to command whatever it is that the market will bear.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you know, the way I think about alpha is that really represents sort of the creative opportunities that active, competitive investors are trying to come up with. And so by definition, all of these kinds of creative opportunities are going to be limited. The more competitive a market is, the more difficult it is to be coming up with genuine alpha. You know, the famed investor, Marty Liebowitz, wrote an article once that called these particular objects alpha hunters versus beta grazers. And I think that really captures the spirit of the dynamic between alpha and beta.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Completely devastating. And so you've got to put in various kinds of protections and risk management tools that will definitely reduce the upside, but it'll also reduce the downside. There's no free lunch as the old adage goes. And so you got to take the good with the bad. And I think there's a role for those kinds of vehicles. And that's really what the hedge fund industry is transforming into when they develop mutual fund products.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think that's a bit of an overstatement, and I think it misses the point that there's actually a spectrum of risk reward opportunities that investors are really looking for. At the one extreme of that spectrum are investors that are looking for absolute return, high octane investments. They don't care if you lose 40% in a year as long as there's a chance of making 80% in a year. And that's perfectly fine for that group of investors. But for typical retail investors that are saving money for their 401k plan, they don't want that to turn into a 201k plan. They want to make sure that the downside is not going to be...”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Every once in a while in the parlance of Wall Street, you get your face ripped off. And that's the thing that retail investors don't fully appreciate, don't understand, and aren't really prepared for. So the hedge fund strategies that have those kinds of risks are going to be very difficult for investors to tolerate in an ETF format. And that's the concern that I have about these kinds of strategies.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think it's a mixed idea. And the reason is that for many kinds of hedge fund strategies, Retail investors should and want to get access to them. But the problem is that certain kinds of hedge fund strategies carry with them very subtle risks that retail investors are not in a position to be able to evaluate. So a good example is tail risk. For example, catastrophe reinsurance. That kind of risk is very subtle in the sense that it generally doesn't happen 95% of the time. And so most of the time you're earning pretty decent returns at relatively low risk. It sounds like a great deal.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think it does hold water to some degree, but it's very difficult for us to separate out the two effects because Morton Thykol was responsible for creating the booster rocket that ultimately exploded, whereas Rockwell International, Martin Marietta, and Lockheed were involved in other parts of the Space Shuttle mission. And you're quite right that there are bigger companies that were involved in different aspects. But the fact that within minutes of this event, Morton Thiacol was singled out does suggest that for whatever reason there was wisdom in the crowds in saying that that company was going to be more effective. But you're absolutely right that we had no idea about the O-ring, and that really required the five and a half month investigation that the Rogers Commission conducted.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, that's the beauty of markets. People are already incentivized to try to beat the market, to try to come up with the winning picks. And it's that process, that kind of competitive spirit that financial markets bring out in people that allow us to extract information in a much more efficient manner.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. So instead of having to use hundreds or thousands of consumers, just a small number over a short period of time can actually give you much the same results”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“We decided to run a simulation where we created synthetic securities representing each of these different bicycle pumps, and we allowed students to trade them over the course of a thirty minute interval in a kind of a mock trading session in our trading lab. And what we found at the end of that 30 minutes is that the relative prices of these synthetic securities actually corresponded precisely to the marketing surveys that took weeks and weeks to conduct. In other words, by using the market, you could actually collect the wisdom of crowds much more quickly than if you had just done these surveys individual by individual.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Sure. Well, you know, it was an interesting collaboration between myself and a neuroscientist, Tommy Poggio and a marketing expert, Eli Dahan, and a couple of our students, Nicholas Chan and Adler Kim. What we were trying to do there was to understand how the standard consumer marketing surveys could be replaced with a simple market simulation. And we did the experiment where we compared a situation where you were trying to get consumers to express their preferences about different kinds of bicycle pumps. And so typically a consumer survey would involve a long series of studies where you ask a bunch of customers features about a particular bicycle pump that they may or may not like. And these surveys generally take many hundreds of thousands of dollars and weeks and weeks to conduct.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You think because at Merr Visit ml.com and learn more about Merrill Lynch, an affiliate of Bank of America. Merrill Lynch makes available products and services. Veteran Smith”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, technology plays a much bigger role today than it did ever before. And it's kind of a financial arms race where if you've got a good idea, you can implement it now faster than you could even think about it. It's what I call the confluence of Moore's Law Meets Murphy's law. And I think that's the challenge. It's that we now have technologies that are so powerful it allows us to do things that we really never imagined and there are going to be unintended consequences.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Absolutely. I think what David was talking about is exactly this process of adaptation, innovation, competition, and over time, the evolution of financial markets with one trading strategy at a time. And he's a real pioneer in the field and having developed some of the earliest trading strategies for statistical arbitrage. And that's an area that's really evolved quite a bit over the last decade.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think there's going to be more women coming into the industry over time. And I think I welcome that because you're right, that women tend to have a very different trading profile.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you know, there's no doubt that you're going to have much more competition in anytime you have an industry that does well for a period of time because it draws people from all walks of life to start plying their trade in the hedge fund industry. And by the way, you're right that the hedge fund industry seems to be dominated by men. But I want to mention there is an organization called 100 Women in Hedge Funds. So I think we are drawing women into the field as well. Over time, you're going to see that competition create these kinds of periods of consolidation. But then when you have large events like the financial crisis, that's also an opportunity for lots of new hedge funds to spring up, like new species that come into existence after an extinction event. So it's not surprising that, say, a high frequency trading funds popped up over the course of the last 10 years, whereas they didn't play nearly as big a role the previous decade.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“But you're right that overall hedge funds were challenged, and I think it's because the relationships that they were trading on, those relationships changed when we had this huge shock called the financial crisis. And over time, they're going to learn how to adapt to that, but it's going to take time. And not surprisingly, just like when we lost the dinosaurs, when that meteorite hit the planet, kicked up a cloud of dust, killed the trees, you know, 65 million years ago, that same kind of extinction event occurred in 2008, 2009.”
2017-04-21 · Masters in Business · Interview With Andrew Lo: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source