In this podcast episode, we revisit an interview with Cliff Asness, the founder and chief investment officer of AQR Capital Management. The discussion highlights Asness's journey from studying with Eugene Fama to establishing AQR, a firm that now manages around $100 billion. Key points of conversation include strategies for tackling market inefficiencies, dealing with performance dips, and the growing impact of machine learning in investing. Asness also shares his thoughts on passive investing, the trend of hedge fund "pod shops," and the challenges posed by cognitive dissonance in the investment sector. He underscores the necessity of maintaining a long-term investment outlook, especially when short-term obstacles arise, drawing lessons from AQR’s experiences during the tech bubble and the value downturn between 2018 and 2020, which reinforced the importance of diligent research and a disciplined investment strategy.
