Latest news with #CliffAsness
New York Post
2 days ago
- Business
- New York Post
Rage against the machines: Hedge fund titan Cliff Asness ‘surrenders' to AI
Hot-tempered hedge fund titan Cliff Asness, who is worth a cool $2 billion according to Forbes, has admitted his AQR Capital Management has 'surrendered to the machines' and fully embraced AI to make trading decisions. The 58-year-old New York-born money man, who also has admitted smashing his own computer screens in anger in the past, told the Financial Times his Connecticut-based firm is now using machine-based algorithms powered by artificial intelligence to make its bets. 'When you turn yourself over to the machine you obviously let data speak more,' Asness, whose firm has $136 billion worth of assets under management, was quoted by the British financial newspaper as saying. Advertisement Cliff Asness told the FT that his AQR Capital Management firm has now fully embraced AI in its investment strategies. Getty Images 'It's been easier that this has been a very good period for us after a very bad period. Odds are it will be a little harder to explain (to investors) in a bad period, but we think it's clearly worth it. The move marks a shift in position for Asness, who had expressed skepticism in an interview with the same newspaper nearly eight years ago, saying that his firm was not ready to stand behind big data and machine learning. 'We worry a lot about finding spurious patterns by data mining. In big data combined with machine learning this is even more dangerous because the data sets are so big and machine learning is so good at finding patterns,' Asness said in December 2017. Advertisement So-called quantitative hedge funds use supercomputers to analyze and filter reams of data and then process that information to make their investing decisions. The FT reported that AQR has recently expanded its use of AI and machine-based investing beyond stocks, despite first bringing the technology onboard in 2018. While the last time Asness's firm saw mass layoffs was in January 2020 after a poor year led to 10% of its global headcount getting the axe, Wall Street is expecting artificial intelligence to reshape the US financial industry over the next few years. Advertisement A January report by Bloomberg Intelligence predicted that up to 200,000 jobs could be cut within five years thanks to the cutting-edge technology that can perform tasks in the way humans do. The study said major global banks would use AI to 'streamline their operations', with back and middle office roles that perform routine items such as data entry and customer service are the most under threat. It also warned that the technology could be used to take on responsibilities typically assigned to entry-level junior bankers, such as drafting financial models and analyzing data for megabucks M&A deals. On Tuesday, the Wall Street Journal reported how Morgan Stanley had used AI to take on the translation of old, outdated coding languages, saving developers an estimated 280,000 hours of working time. Advertisement 200,000 jobs could be gone across Wall Street within five years thanks to AI, a Bloomberg Intelligence study forecasted. Pichapob – That drive for efficiency is fueled by profit potential. The Bloomberg Intelligence report projects AI could boost bank pre-tax profits by 12% to 17% by 2027, adding up to $180 billion to the industry's bottom line. But Ray Dalio, the founder of the world's largest hedge fund Bridgewater Associates, has warned markets not to buy all the hype surrounding artificial intelligence. In an interview with the All-In podcast earlier this year, the 75-year-old, who has invested in AI himself, warned some investors are ignoring basic economic fundamentals, likening it the tech giant crash of the late 1990s. 'This looks quite a lot like 1998 or '99,' Dalio said, referencing the peak of the dot-com era. 'A great company that gets expensive is much worse than a bad company that's really cheap.'
Bloomberg
3 days ago
- Business
- Bloomberg
Cliff Asness Pushes Back on Bubble Fears
Get a jump start on the US trading day with Matt Miller, Katie Greifeld and Sonali Basak on "Bloomberg Open Interest." Billionaire Cliff Asness tells Bloomberg Open Interest how his firm is up more than 10% so far this year. Plus, Marathon's Bruce Richards sees cracks in a red hot credit trade and explains why he's hesitant about the software sector. And, from Wall Street to Y'all Street. Former Congressman Jeb Hensarling is leading the charge for the new Texas Stock Exchange. He join us from Dallas with details on the new exchange. And the CEO of Autodesk joins the C-Suite to talk about how technology can help to mitigate the housing crisis. (Source: Bloomberg)
AU Financial Review
3 days ago
- Business
- AU Financial Review
ASX to rise, Nvidia helps pace Wall St higher
Australian shares are set to open higher, tracking a solid session in New York after data showed that the US jobs market is holding steady. Nvidia and Broadcom paced semiconductor shares higher. President Donald Trump is poised to sign a directive formally raising steel and aluminium tariffs to 50 per cent from 25 per cent on Wednesday AEST. There has been a 'tremendous return' to 'basic rational investing' this year, AQR Capital Management's Cliff Asness told Bloomberg. 'The market has rewarded good companies that are getting better, that aren't too risky. We are not in a bubble.' Broadcom hit a fresh record high after the company said it has begun to ship its latest networking chip that aims to speed AI. Its shares were up 2.5 per cent. Nvidia advanced 2.7 per cent extending a rebound from its April low to more than 45 per cent. Market highlights ASX futures are pointing up 27 points or 0.3 per cent to 8511. All US prices are as of 2.30pm New York time. Today's agenda The key focus will be the release of first-quarter GDP data at 11.30am. Overseas, a raft of May monthly services data will be released in Europe and the US. The Federal Reserve will release its latest Beige Book report early Friday AEST. Ahead of that, the Bank of Canada is expected to hold its key rate steady as policymakers await more clarity around tariff impacts. Top stories 'Adults in the room': Australia and EU push for trade deal | Australia and the EU have redoubled efforts to secure a free trade agreement as insurance against Donald Trump's trade war. | Nearly half the $93 billion superannuation fund's investment governance team was considering quitting within two years, confidential data shows. | The OECD has urged the federal and state governments to repair their budgets, as new data shows record growth in welfare spending and business investment languishes. Japan's Mixi hikes PointsBet takeover bid, valuing bookmaker at $402m | The entertainment giant's hopes of acquiring the ASX-listed group had been complicated by a rival proposal from Matthew Tripp's Betr, which holds 20 per cent.
Bloomberg
3 days ago
- Business
- Bloomberg
AQR's Cliff Asness Hails Return of ‘Basic Rational Investing'
Years of speculative excess are giving way to healthier markets where fundamentals now matter, boosting quant stock-picking strategies across the board, according to AQR Capital Management 's Cliff Asness. While tariff-induced volatility has whipsawed the S&P 500 Index and hedge funds alike, it's been a boon for quant approaches that go long and short across hundreds of stocks. Among the winners, the AQR Equity Market Neutral Fund has returned roughly 15% this year, data compiled by Bloomberg show.
Bloomberg
3 days ago
- Business
- Bloomberg
Asness on Buying Opportunities, Markets, Tarirffs
Cliff Asness, AQR Capital Management founder, talks about the current state of markets, his investing philosophy, where he sees buying opportunities and how President Donald Trump's policies could impact investors. He is on "Bloomberg Open Interest." (Source: Bloomberg)
