Asness: Personal cynicism delayed AQR's machine learning adoption by years
Cliff Asness · Cliff Asness - Simple Investing is Hard (EP.385) · May 13, 2024 · at 34:44
Cliff Asness, founder and CIO of AQR Capital Management, discusses his historical resistance to integrating machine learning into quantitative factor investing.
0:00 / 0:10exact quote · 10.4s
720p mp4 · rendered on demand · StarZero watermark
“I think I probably slowed us down on some of the machine learning stuff by a couple years with a little cynicism along the lines of exactly what you're talking about, that we could turn over more of the decision to the machines.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Cliff Asness
Asness: Social media and ubiquitous data make market inefficiencies longer-lasting
“I think the ubiquity of data, social media, maybe indexing, these things have added up to a market where inefficiencies are bigger and last longer.”
Asness: Multi-manager pod shops probably cannot grow by another 5x
“I tend to think those shops probably can't grow by another factor of five. There's just a limit to alpha. There are limits how many great traders that are out there.”
Asness: Private equity volatility is higher than public markets despite reported metrics
“Where private equity is well to the left of public equity, and it's concentrated off in levered equity. So if that's vol on the x-axis, it is not to the left.”
Asness: Markets are more efficient and harder to beat than active managers think
“Even today, I think the markets are more efficient, I think, probably than the average active manager. I think they're hard to beat.”