In this podcast, Brian Hurst, CEO of ClearAlpha, shares insights from his impressive journey in finance, beginning at Wharton and leading to his time at Goldman Sachs with Cliff Asness, before co-founding AQR Capital. The conversation highlights the shift in hedge fund strategies from single to multi-manager and multi-strategy models, aimed at reducing risk and enhancing consistency in returns. Hurst points out the limitations of fund-of-funds structures, championing the advantages of multi-manager strategies that lower correlation and boost capital efficiency, ultimately leading to better returns for investors. A key message from the discussion is that by diversifying across strategies that do not closely correlate, the multi-manager, multi-strategy approach helps create a steadier return profile while minimizing the impact of any one strategy’s underperformance.
