

Antti Ilmanen on Expected Returns
Jul 15, 2022
Antti Ilmanen, principal and global co-head at AQR Capital Management, shares insights shaped by his journey from academia to global finance. He discusses the challenges of investing in low return environments and the importance of diversification and patience. Ilmanen highlights behavioral finance principles, the complexities of GDP growth and market dynamics, and debunks myths about the illiquidity premium in private markets. With a mix of serious advice and light-hearted storytelling, he empowers new investors to navigate the financial landscape with integrity.
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Career Beginnings
- Antti Ilmanen's career began at Finland's central bank, managing foreign exchange reserves.
- This led him to study in the U.S., where he met his wife and future AQR founders.
Brevan Howard Experience
- Ilmanen joined Brevan Howard to build a systematic trading team.
- Though not a perfect fit, it offered valuable experience, especially during the 2008 financial crisis.
Alpha's Elusive Nature
- Alpha, the elusive excess return, is difficult to achieve and often misattributed.
- What appears as alpha may be explained by market correlations or specific investment styles.