Money Stuff: The Podcast Cliff Asness
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Jun 20, 2025 
Cliff Asness, co-founder of AQR Capital Management, dives into the fascinating world of quantitative investing and market dynamics. He discusses momentum and meme stocks, using GameStop as a prime example of investor behavior. The conversation highlights the role of machine learning in finance and critiques traditional valuation methods, particularly in private equity. Asness also explores the psychological factors influencing stock ownership, advocating for a new understanding that blends enjoyment with investment strategies.
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Role of Active Managers
- Active managers predict securities' returns by finding mispricings or bearing risk premiums.
- They help markets move prices toward equilibrium or provide liquidity by taking unwanted risks.
Why Momentum Works
- Momentum works because markets either underreact or overreact to new information.
- Momentum trading can either correct prices or create short-term inefficiencies.
Facing Meme Stock Backlash
- Cliff Asness was publicly short AMC during meme stock frenzy and faced Twitter backlash.
- He learned not to respond aggressively to internet criticism to avoid feeding trolls.