AQR Cutting Positions After Bad Year

The transcript discusses a firm's poor performance, with only two out of 41 mutual funds showing positive returns, leading to job cuts. It highlights the challenges faced by quantitative funds due to market volatility and the struggles of AQR mutual funds, which saw significant outflows in 2018. The discussion raises questions about the future of quant funds, market structure changes, and the need for adaptation and new talent.

What was the main reason for the firm's job cuts?

• High employee turnover

• Poor performance of mutual funds

• Expansion into new markets

• Regulatory changes

What was a significant challenge faced by quant funds this year?

• Lack of investor interest

• Sharp market volatility

• Technological failures

• Regulatory hurdles

How much did AQR mutual funds see in outflows through November 2018?

• 3 billion

• 5 billion

• 10 billion

• 7 billion

What is a potential requirement for quant funds to succeed in the future?

• Slower adaptation to market changes

• Focus on traditional investment strategies

• Increased reliance on human intuition

• Faster adaptation and new talent

What role do electrons play in the future of quant funds?

• They are irrelevant to quant funds

• They replace human tasks

• They increase market volatility

• They slow down processes