Cliff Asness: Timely & Timeless Investment Wisdom | #528

The Meb Faber Show - Better Investing

The Idea Farm

Business, Investing, Management

4.7 • 938 Ratings

🗓️ 5 April 2024

⏱️ 64 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

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. (1:20) - Welcome to our guest, Cliff Asness (1:45) - Cliff’s article in the Financial Times (2:30) - Parsing Cliff’s real quotes from fake ones (8:56) - Thoughts on bonds as a diversifier (13:37) - Moving away from market-cap weighting (19:27) - Managing client expectations (29:30) - AQR Data Sets (29:56) - Alternative trend-following (43:48) - Position resizing for alternative strategies (48:06) - AQR implementing AI in their investment process (51:46) - Cliff’s most controversial opinion (57:39) - Cliff’s most memorable investment Learn more about Cliff: AQR; Twitter ----- Follow Meb on Twitter, LinkedIn and YouTube For detailed show notes, click here To learn more about our funds and follow us, subscribe to our mailing list or visit us at cambriainvestments.com ----- Sponsor: Today’s episode is sponsored by The Idea Farm. The Idea Farm gives you access to over $100,000 worth of investing research, the kind usually read by only the world’s largest institutions, funds, and money managers. Subscribe for free here. Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok ----- Interested in sponsoring the show? Email us at [email protected] ----- Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. ----- Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to the Mebb Faver Show, where the focus is on helping you grow and
0:08.0	preserve your wealth. Join us as we discuss the craft of investing and
0:11.3	uncover new and profitable ideas all to help you grow
0:13.9	wealthier and wiser. Better investing starts here.
0:17.0	Meck Baber is the co-founder and chief investment officer at Cambria Investment
0:20.7	Management. Due to industry regulations he will not discuss any of Cambry's funds on this podcast.
0:25.1	All opinions expressed by podcast participants are solely their own opinions and do not
0:28.3	reflect the opinion of Cambria Investment Management or its affiliates.
0:31.2	For more information, visit Cambria Investments.com.
0:33.4	What's up y'all? We got an amazing show today. If you saw the name on the
0:40.8	episode, you know who this is. You know it's going to be a great one and our guest, Cliff Asnes does not disappoint.
0:46.4	He's the co-founder, managing principal, and chief investment officer at AQR Capital Management.
0:52.0	In today's episode, Cliff and I start by talking about some quotes he may or may not have said in the past.
0:58.0	Then we kick around a bunch of topics. We talk about diversifying by both asset class, geography, the challenge of managing short-term
1:04.4	expectations while keeping a long-term perspective, and how AQR is implementing
1:09.1	AI and machine learning in their investing process.
1:15.0	This episode is brought to you by 10 East.
1:18.0	Long time listeners know I've invested in private markets quite a bit myself,
1:22.0	but with access to these markets broadening, it can be hard to know where to private markets
1:23.4	quite a bit myself, but with access to these markets broadening, it can be hard to know where to find vetted high quality offerings.
1:26.8	That's where Ten East comes in. Ten East is a platform where qualified investors can co-invest on a deal by deal basis across private equity, private credit, real estate, venture, and other one-off opportunities typically unavailable through traditional channels.
1:42.0	They're founded and led by Michael Lefel,
	...

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