AQR Founder and Managing Partner Cliff Asness stressed the importance of diversification, patience and fair fees in a speech to the Investment News Alternative Investments Conference in Chicago on October 16.
Recent market volatility is a reminder of the value of a truly diversified portfolio, he said at the event, according to Investment News. Alternatives to traditional long-only stock and bond allocations are important, he added.
“Alternative investments should have positive expected returns and very low correlation to traditional assets,” Asness was quoted as saying.
He elaborated in a videotaped interview after his speech. “We think of [diversification] in two main ways: Are you diversified by asset classes? And are there other things you can add to your portfolio that are true diversifiers at fair fees?” he said.
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