Money Maze Podcast 151: Volatility Laundering in Private Equity, the Merits of International Diversification, Value Vs Growth and Systematic Investing - With Cliff Asness
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Aug 27, 2024 
Cliff Asness, Co-Founder and CIO of AQR, shares his insights into the investing world, emphasizing the importance of global diversification. He discusses the intriguing concept of "volatility laundering" in private equity, where infrequent valuations can mislead investors about risk. Asness also explores market efficiency, pointing out its nuances and the U.S.'s recent outperformance. With a personal touch, he reflects on philanthropy, advocating for concentrated giving to maximize impact.
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Cliff Asness's Turning Point
- Cliff Asness was an underachiever and class clown in high school but transformed into a driven, type A person in college.
- His turning point was a personal realization at university that he must work hard, a commitment he has maintained ever since.
Choosing Chicago for PhD
- Cliff chose University of Chicago for his PhD mostly because they flew him out to visit and the weather was great.
- He admits it was a shallow reason but acknowledges how path dependency shaped his career.
Markets Not Perfectly Efficient
- Eugene Fama, Efficient Market Hypothesis co-winner, admits markets are not perfectly efficient.
- This nuance surprises many, but imperfect efficiency allows for investment opportunities.