Episode 027: Cliff Asness, host Rick Ferri

Oct 30, 2020

Guest

Cliff Asness

Guest

Rick Ferri

Cliff Asness, founder of AQR Capital Management, discusses his journey from being an unmotivated student to a finance and computer science enthusiast. He explains the correlation between momentum and value strategies in investing and the benefits of combining them. Additionally, he shares insights on evaluating the 60/40 portfolio, comparing international and US stocks, and the importance of diversification.

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Episode notes

Introduction

00:00 • 2min

Cliff Asness: From Unmotivated Student to Finance and Computer Science Enthusiast

01:41 • 5min

Studying Under Nobel Laureates

06:33 • 25min

The Relationship Between Momentum and Value Strategies in Investing

31:13 • 8min

Career Journey and Decision Making

39:36 • 8min

Creating an Investment Powerhouse and Evaluating the 60/40 Portfolio

47:32 • 6min

Comparing International Stocks and US Stocks: Diversification and Valuations

53:26 • 5min

Dr. Cliff Asness is a Founder, Managing Principal, and Chief Investment Officer at AQR Capital Management, a quantitative money manager overseeing $186 billion in assets as of December 2019. Prior to co-founding AQR Capital Management, he was a Managing Director and Director of Quantitative Research for the Asset Management Division of Goldman, Sachs & Co. He is an award-winning researcher on quantitative investment strategies and has authored articles for many publications, including The Journal of Portfolio Management, Financial Analysts Journal, The Journal of Finance, and The Journal of Financial Economics.

Cliff received a B.S. in economics from the Wharton School and a B.S. in engineering from the Moore School of Electrical Engineering at the University of Pennsylvania, graduating summa cum laude in both. He received an M.B.A. with high honors and a Ph.D. in finance from the University of Chicago, where he was Eugene Fama’s student and teaching assistant for two years.

This podcast is hosted by Rick Ferri, CFA, a long-time Boglehead and investment adviser. The Bogleheads are a group of like-minded individual investors who follow the general investment and business beliefs of John C. Bogle, founder and former CEO of the Vanguard Group. It is a conflict-free community where individual investors reach out and provide education, assistance, and relevant information to other investors of all experience levels at no cost.

The organization's free website is Bogleheads.org and the wiki site is Bogleheads® wiki. Bogleheads sites are operated by volunteers who contribute time and talent. Donations help defray operating costs.

Since 2000, the Bogleheads' have held national conferences in major cities around the country and currently meet in Philadelphia in the autumn of each year. There are 56 Local Chapters in the US and three Foreign Chapters that also meet regularly. New Chapters are being added on a regular basis.

This podcast is supported by the John C. Bogle Center for Financial Literacy, a non-profit organization approved by the IRS as a 501(c)(3) public charity on February 6, 2012.