The Biggest Investment Mistake: Billionaire Hedge Fund Cliff Asness Reveals

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 https://mebfaber.com/2024/04/05/cliff-asness/ (00:00) - Intro (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 ----- Follow Meb: Twitter: https://twitter.com/MebFaber LinkedIn: https://www.linkedin.com/in/mebanefaber/ Website: http://mebfaber.com/ To learn more about our products and follow us, subscribe to our mailing list: https://theideafarm.us1.list-manage.com/subscribe/post?u=6750faf5c6091bc898da154ff&id=7249739cdb Listen and subscribe on the platform of your choice: Apple: https://podcasts.apple.com/us/podcast/the-meb-faber-show/id1128955736 Spotify: https://open.spotify.com/show/6gEEIpE2eu1yndaFra4Cgb Follow The Idea Farm: Subscribe (FREE!): www.theideafarm.com Twitter: https://twitter.com/TheIdeaFarm LinkedIn: https://www.linkedin.com/company/theideafarm-co TikTok: https://www.tiktok.com/@mebfabershow Instagram: https://www.instagram.com/mebfabershow/reels/