Investment innovation at the intersection of technology, data and behavioral finance.
It's in our DNA.

Explore Our Firm

Investment innovation at the intersection of technology, data and behavioral finance.
It's in our DNA.

Explore Our Firm
Working Paper

Understanding The Virtue of Complexity

July 10, 2025 - Bryan T. Kelly Semyon Malamud

We respond to recent academic challenges to aspects of the “virtue of complexity” described in our prior research. We provide detailed discussions of how complex models learn in small samples, the roles of “nominal” and “effective” complexity, the unique effects of implicit regularization, and the importance of limits to learning. We then present new empirical and theoretical analyses that expand on KMZ. Finally, we introduce and demonstrate the virtue of ensemble complexity.

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White Paper
Alternative Thinking

Cliff's Perspectives

(So) What If You Miss the Market’s N Best Days?

June 5, 2025 - Cliff Asness

This post revisits and refutes a long-standing argument against market timing—that missing just a few of the market’s best days can devastate returns—by demonstrating its logical flaws and statistical irrelevance. Using both historical and out-of-sample data, it shows that the risks and rewards of market timing are more symmetric than commonly portrayed.

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More Cliff's Perspectives

Strategies

We offer a broad range of diversified strategies based on a unified set of underlying principles.

AQR is at the nexus of economics, behavioral finance, data, and technology. Our evolution has been a continuous exploration of what drives markets and how it can be applied to client portfolios.

Alternatives Equities ESG Tax Aware

Investors should conduct their own analysis and consult with professional advisors prior to making any investment decisions. Diversification does not eliminate the risk of experiencing investment loss. Past performance is not a guarantee of future results. Investment process is subject to change.