Cliff Asness: Make Hedge Funds Great Again

Cliff Asness discusses the future of investing, highlighting challenges in achieving expected returns. He explores various investment strategies, including the 60/40 portfolio, and emphasizes the importance of understanding market conditions. Asness critiques hedge fund performance and advocates for factor investing as a potential solution. He also touches on the difficulty of generating alpha and the role of risk in investment strategies.

What is the expected return over inflation for a 60/40 portfolio according to the discussion?

• 3-4%

• 8-9%

• 2-2.5%

• 5-6%

Which solution is referred to as the 'Jack Bogle Solution'?

• Adding more alpha

• Factor investing

• Doing nothing

• Taking more risk

What is the main challenge in generating alpha according to the discussion?

• High volatility

• Randomness of the market

• Excessive regulation

• Lack of investment opportunities

What is a common criticism of hedge fund performance?

• They are too risky

• They are not diversified

• They charge too little

• They underperform the S&P 500

What analogy is used to describe the potential benefit of human interaction with investment models?

• A chess grandmaster plus a computer

• A marathon runner with a coach

• A pilot with an autopilot system

• A chef with a recipe book