Latest news with #Asness
CNBC
01-07-2025
- Business
- CNBC
Cliff Asness' AQR sees multiple hedge funds up double digits in 2025, beating the market
AQR Capital Management took advantage of a volatile first half of 2025, with a duo of hedge funds doubling the S&P 500's return. The Apex strategy from Cliff Asness' firm, which combines stocks, macro and arbitrage trades and has $4.3 billion in assets under management, rallied 11.4% in the first six months of the year, according to a person familiar with AQR's returns who asked to be anonymous as the information is private. AQR's long-short Delphi equity fund, with $4.1 billion in assets under management, gained 11.6% net of fees in the first half of 2025, the person said. The stock market staged a stunning rebound this year even as uncertainty remains amid an aggressive trade war and Middle East escalation. The S&P 500 has rebounded from a near 20% sell-off in April, going on to score a new record high on Friday and again on Monday. The equity benchmark is up 5.3% year to date. AQR's alternative trend-following Helix strategy has returned 7.4% so far this year, the person said. Asness co-founded AQR in 1998 after a stint at Goldman Sachs. He and his partners established the quant-driven firm's investment philosophy at the University of Chicago's Ph.D. program, focusing on value and momentum strategies. The firm has successfully expanded into multistrategy approaches in recent years. AQR has $142 billion in assets under management, up from about $99 billion at the start of 2024. AQR declined to comment.
New York Post
04-06-2025
- Business
- New York Post
Rage against the machines: Hedge fund titan Cliff Asness ‘surrenders' to AI
Hot-tempered hedge fund titan Cliff Asness, who is worth a cool $2 billion according to Forbes, has admitted his AQR Capital Management has 'surrendered to the machines' and fully embraced AI to make trading decisions. The 58-year-old New York-born money man, who also has admitted smashing his own computer screens in anger in the past, told the Financial Times his Connecticut-based firm is now using machine-based algorithms powered by artificial intelligence to make its bets. 'When you turn yourself over to the machine you obviously let data speak more,' Asness, whose firm has $136 billion worth of assets under management, was quoted by the British financial newspaper as saying. Advertisement Cliff Asness told the FT that his AQR Capital Management firm has now fully embraced AI in its investment strategies. Getty Images 'It's been easier that this has been a very good period for us after a very bad period. Odds are it will be a little harder to explain (to investors) in a bad period, but we think it's clearly worth it. The move marks a shift in position for Asness, who had expressed skepticism in an interview with the same newspaper nearly eight years ago, saying that his firm was not ready to stand behind big data and machine learning. 'We worry a lot about finding spurious patterns by data mining. In big data combined with machine learning this is even more dangerous because the data sets are so big and machine learning is so good at finding patterns,' Asness said in December 2017. Advertisement So-called quantitative hedge funds use supercomputers to analyze and filter reams of data and then process that information to make their investing decisions. The FT reported that AQR has recently expanded its use of AI and machine-based investing beyond stocks, despite first bringing the technology onboard in 2018. While the last time Asness's firm saw mass layoffs was in January 2020 after a poor year led to 10% of its global headcount getting the axe, Wall Street is expecting artificial intelligence to reshape the US financial industry over the next few years. Advertisement A January report by Bloomberg Intelligence predicted that up to 200,000 jobs could be cut within five years thanks to the cutting-edge technology that can perform tasks in the way humans do. The study said major global banks would use AI to 'streamline their operations', with back and middle office roles that perform routine items such as data entry and customer service are the most under threat. It also warned that the technology could be used to take on responsibilities typically assigned to entry-level junior bankers, such as drafting financial models and analyzing data for megabucks M&A deals. On Tuesday, the Wall Street Journal reported how Morgan Stanley had used AI to take on the translation of old, outdated coding languages, saving developers an estimated 280,000 hours of working time. Advertisement 200,000 jobs could be gone across Wall Street within five years thanks to AI, a Bloomberg Intelligence study forecasted. Pichapob – That drive for efficiency is fueled by profit potential. The Bloomberg Intelligence report projects AI could boost bank pre-tax profits by 12% to 17% by 2027, adding up to $180 billion to the industry's bottom line. But Ray Dalio, the founder of the world's largest hedge fund Bridgewater Associates, has warned markets not to buy all the hype surrounding artificial intelligence. In an interview with the All-In podcast earlier this year, the 75-year-old, who has invested in AI himself, warned some investors are ignoring basic economic fundamentals, likening it the tech giant crash of the late 1990s. 'This looks quite a lot like 1998 or '99,' Dalio said, referencing the peak of the dot-com era. 'A great company that gets expensive is much worse than a bad company that's really cheap.'
Yahoo
29-03-2025
- Business
- Yahoo
Is Amazon.com, Inc. (AMZN) the Top Blue Chip AI Stock to Buy According to Billionaire Cliff Asness?
We recently published a list of the . In this article, we are going to take a look at where Inc. (NASDAQ:AMZN) stands against other top blue chip AI stocks to buy according to billionaire Cliff Asness. Cliff Asness is one of Wall Street's most respected hedge fund managers. The founder and managing principal of AQR Capital Management has often relied on various strategies to squeeze value in the equity markets. Right from relying on fundamental analysis, Asness has also etched his name by focusing on value and momentum strategies that have often generated solid returns. AQR Capital Management has generated positive outcomes over the past three years, having recorded its best year in 2022, when it gained 43.5%. Its 16.8% gain in 2021, 18.4% in 2023 and 15.1% in 2024 affirm its status as the best-performing multi-stage hedge fund. The hedge fund is increasingly deploying artificial intelligence to enhance its performance. The technology is used in the core parts of the investing process while helping combine and weigh the various investment factors. AI is also being used to speed up coding and create trading signals from text. READ ALSO: Cathie Wood's Top 12 AI Stock Picks in 2025 and 10 Best Stocks to Buy According to Billionaire Ray Dalio. 'AI's coming for me now. It turns out it's annoyingly better than me. AI, to be honest, pushes us a little on the spectrum away from some of the traditional things we've talked about, and that was uncomfortable for me,' said Asness. Even as Asness continues to integrate artificial intelligence into the overall investment strategy at AQR Capital Management, he remains wary that the markets have become less efficient over the past 35 years. 'One of my themes is that markets just don't get efficient on their own. There are our tools, our institutions, our traditions, and ultimately markets are a voting mechanism. So anything we do to make that noisier is going to make markets less efficient,' Asness said. In a less efficient market, rational value investors need to weather the ups and downs that come into being. Consequently, the AQR Capital Management chief believes rational investors prepared to stay in the game for the long term stand a better chance of navigating the less inefficient markets. The longer an investor's timeline, the better their capacity to endure the fluctuations of the market and benefit from its reduced efficiency, assuming they can weather elevated risk and potentially prolonged periods of discomfort. Several aspects can assist with this, such as not fixating on every single item in your portfolio, losing sight of the broader picture, and not believing that three to five-year trends are fixed. Asness also advises investors to be wary of over-investing in private assets in an attempt to stabilize their returns. A consistent critic of private equity, Asness contends that firms which do not accurately assess assets against market value are obscuring the genuine level of risk investors are embracing. He expresses confusion as to why investors appear prepared to pay a premium for what he refers to as 'volatility laundering,' arguing that by doing so, they are settling for diminished returns. To make the list of 10 Blue Chip AI Stocks to Buy According to Billionaire Cliff Asness, we analyzed AQR Capital Management Q4 2024 13F filing. We settled on the top blue chip companies with significant exposure to artificial intelligence. We then analyzed them on why they stand out as Billionaire Cliff Asness' top stock picks. Finally, we ranked the stocks in ascending order based on the value of AQR Capital Management equity stakes. Additionally, we have mentioned the broader hedge fund sentiment around each stock, as of Q4 2024. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A customer entering an internet retail store, illustrating the convenience of online shopping. AQR Capital Management Equity Stakes: $1.18 Billion Number of Hedge Fund Holders: 338 Inc. (NASDAQ:AMZN) is an internet giant engaged in e-commerce, cloud computing and digital streaming. It also provides artificial intelligence services through Amazon web services, among other offerings. It is one of the best blue chip AI stocks to buy, according to billionaire Cliff Asness, given the diversified nature of its core business. Inc. (NASDAQ:AMZN) has integrated AI into every aspect of its business, including targeted advertisements, e-commerce search, and Amazon Web Services (AWS). With revenue climbing 19% year over year in the fourth quarter, Amazon Web Services (AWS) is the top cloud service provider and one of Amazon's fastest-growing units. AI-related services that enable companies to create AI apps and automate business procedures are in high demand. Last year, Inc. (NASDAQ:AMZN) generated $59 billion in net income and $638 billion in net revenue. Analysts expect earnings to expand at a compound annual rate of 21% over the next three years as the tech giant experiences robust growth in its key business segments, including AWS. Overall, AMZN ranks 4th on our list of top blue chip AI stocks to buy according to billionaire Cliff Asness. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
28-03-2025
- Business
- Yahoo
Is NVIDIA Corporation (NVDA) the Top Blue Chip AI Stock to Buy According to Billionaire Cliff Asness?
We recently published a list of the . In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other top blue chip AI stocks to buy according to billionaire Cliff Asness. Cliff Asness is one of Wall Street's most respected hedge fund managers. The founder and managing principal of AQR Capital Management has often relied on various strategies to squeeze value in the equity markets. Right from relying on fundamental analysis, Asness has also etched his name by focusing on value and momentum strategies that have often generated solid returns. AQR Capital Management has generated positive outcomes over the past three years, having recorded its best year in 2022, when it gained 43.5%. Its 16.8% gain in 2021, 18.4% in 2023 and 15.1% in 2024 affirm its status as the best-performing multi-stage hedge fund. The hedge fund is increasingly deploying artificial intelligence to enhance its performance. The technology is used in the core parts of the investing process while helping combine and weigh the various investment factors. AI is also being used to speed up coding and create trading signals from text. READ ALSO: Cathie Wood's Top 12 AI Stock Picks in 2025 and 10 Best Stocks to Buy According to Billionaire Ray Dalio. 'AI's coming for me now. It turns out it's annoyingly better than me. AI, to be honest, pushes us a little on the spectrum away from some of the traditional things we've talked about, and that was uncomfortable for me,' said Asness. Even as Asness continues to integrate artificial intelligence into the overall investment strategy at AQR Capital Management, he remains wary that the markets have become less efficient over the past 35 years. 'One of my themes is that markets just don't get efficient on their own. There are our tools, our institutions, our traditions, and ultimately markets are a voting mechanism. So anything we do to make that noisier is going to make markets less efficient,' Asness said. In a less efficient market, rational value investors need to weather the ups and downs that come into being. Consequently, the AQR Capital Management chief believes rational investors prepared to stay in the game for the long term stand a better chance of navigating the less inefficient markets. The longer an investor's timeline, the better their capacity to endure the fluctuations of the market and benefit from its reduced efficiency, assuming they can weather elevated risk and potentially prolonged periods of discomfort. Several aspects can assist with this, such as not fixating on every single item in your portfolio, losing sight of the broader picture, and not believing that three to five-year trends are fixed. Asness also advises investors to be wary of over-investing in private assets in an attempt to stabilize their returns. A consistent critic of private equity, Asness contends that firms which do not accurately assess assets against market value are obscuring the genuine level of risk investors are embracing. He expresses confusion as to why investors appear prepared to pay a premium for what he refers to as 'volatility laundering,' arguing that by doing so, they are settling for diminished returns. To make the list of 10 Blue Chip AI Stocks to Buy According to Billionaire Cliff Asness, we analyzed AQR Capital Management Q4 2024 13F filing. We settled on the top blue chip companies with significant exposure to artificial intelligence. We then analyzed them on why they stand out as Billionaire Cliff Asness' top stock picks. Finally, we ranked the stocks in ascending order based on the value of AQR Capital Management equity stakes. Additionally, we have mentioned the broader hedge fund sentiment around each stock, as of Q4 2024. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of a colorful high-end graphics card being plugged in to a gaming computer. AQR Capital Management Equity Stakes: $2.19 Billion Number of Hedge Fund Holders: 223 NVIDIA Corporation (NASDAQ:NVDA) is a technology giant that designs and supplies graphics processing units (GPUs) and system-on-a-chip (SoC) units. It is the leading supplier of GPUs needed to power data centers and other electronic devices amid the artificial intelligence race. It is one of the top blue chip AI stocks to buy, according to billionaire Cliff Asness, as it continues to benefit from increased spending on AI infrastructure. Its flagship GPUs, the H100, H200, and the more recent Blackwell series, have become the standard for powering data centres amid the AI boom. Due to its market dominance in the GPU industry, NVIDIA Corporation (NASDAQ:NVDA) already enjoys a competitive advantage that is anticipated to fuel further growth. Additionally, the Blackwell AI processor's high demand caused NVIDIA's most recent quarterly sales to surpass Wall Street projections, affirming underlying growth. With data center revenue of $35.6 billion, which exceeded the $34.1 billion forecast, the chipmaker posted revenue of $39.3 billion in FQ4 2025, exceeding Wall Street's projection of $38.2 billion. Because of AI adoption, NVIDIA Corporation's (NASDAQ:NVDA) data center division has emerged as its most significant and rapidly expanding revenue stream, accounting for almost 88% of total sales. Overall, NVDA ranks 2nd on our list of top blue chip AI stocks to buy according to billionaire Cliff Asness. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
