Top all-time · #1690
AQR Capital Management
Company blog · aqr.com/Insightseconomicsbusiness
AQR Capital Management is the company blog at aqr.com, writing about economics and business. Since 2014, 43 different Hacker News readers have linked it 59 times, most often “Buffett's Alpha (2013)”. No feed was found, so read it on the site itself.
As quantitative investors, we believe that a systematic and disciplined approach is the best way to achieve long-term value. Explore our broad range of innovative, diversifying strategies.
Most-linked posts?
- Buffett's Alpha (2013)4 people · 4 mentions · first linked 2019-02-06
- /Insights/Perspectives/Virtue-is-its-Own-Reward-Or-One-Mans-Ceiling-is-Another-Mans-Floor3 people · 4 mentions · first linked 2019-08-12
- /cliffs-perspective3 people · 4 mentions · first linked 2015-11-19
- /Insights/Research/White-Papers/Pathetic-Protection-The-Elusive-Benefits-of-Protective-Puts2 people · 3 mentions · first linked 2019-08-18
- Why Not 100% Equities2 people · 2 mentions · first linked 2024-03-03
- /Insights/Research/Journal-Article/Fact-Fiction-and-Momentum-Investing2 people · 2 mentions · first linked 2018-08-20
- AQR on FANG – still (not) crazy2 people · 2 mentions · first linked 2017-06-15
- /Insights/Perspectives/The-Long-Run-Is-Lying-to-You2 people · 2 mentions · first linked 2021-03-17
- The Illiquidity Discount?2 people · 2 mentions · first linked 2020-01-25
- /Insights/Perspectives2 people · 2 mentions · first linked 2019-10-02
What Hacker News says?
https://www.aqr.com/-/media/AQR/Documents/Whitepapers/Unders... You should stop trying to predict the next crash. According to the study, most people (including institutional investors) consistently believe there is a >10% chance the market will crash in the next 6 months when historically the probability is only 1%
Comment linking /-/media/AQR/Documents/Whitepapers/Understanding-the-Volatility-Risk-Premium.pdf
on “CrowdStrike Update: Windows Bluescreen and Boot Loops”Submitted The Hedgie in Winter as a story · 30 points
HN discussionHedging via options is guaranteed to cost more than the benefit you’d receive, over the long run. This is due to the volatility risk premium (the insurers against risk must be paid, and will price it to come out ahead). See https://www.aqr.com/Insights/Research/White-Papers/Pathetic-... But no, you cannot hedge away risks of a recession - for cheaper than what a recession would cause.
Comment linking /Insights/Research/White-Papers/Pathetic-Protection-The-Elusive-Benefits-of-Protective-Puts
on “WeWTF”Submitted High-Frequency Derangement Syndrome as a story · 3 points
HN discussionThe cost of consistent recession hedging is prohibitive and larger than the benefit you’d receive, because of arbitrage (if it was cheaper than risk, you could invest risk free). See: https://www.aqr.com/Insights/Research/White-Papers/Pathetic-... If you could hedge a recession, we’d have no recessions :) Hedging only works if you have short time durations (eg you wanna hedge specifically in October, because you hav…
Comment linking /Insights/Research/White-Papers/Pathetic-Protection-The-Elusive-Benefits-of-Protective-Puts
on “WeWTF”Submitted The “Fiduciary Rule” and Unintended Consequences as a story · 3 points
HN discussionhttps://www.aqr.com/Insights/Research/Journal-Article/A-Cent...
Comment linking /Insights/Research/Journal-Article/A-Century-of-Evidence-on-Trend-Following-Investing
on “I've reproduced 130 research papers about “predicting the stock market””Submitted Hedge Funds Search for Their Real Killers as a story · 3 points
HN discussion>There are no get rich quick schemes. That's just someone else getting rich off you. Eh. There are a handful, they're just unethical and sometimes illegal. E.g. https://www.aqr.com/cliffs-perspective/virtue-is-its-own-rew... explains how you can easily beat the market by investing in sin stocks. Similarly, you can make money really quickly if you mess around with grey market goods, shady affiliate networking product…
Comment linking /cliffs-perspective/virtue-is-its-own-reward-or-one-mans-ceiling-is-another-mans-floor
on “How to get rich without getting lucky”Submitted Academic Alpha – A (Re)Introduction to Style Premia Investing as a story · 2 points
HN discussionYep. There's a good Cliff Asness post on this: https://www.aqr.com/Insights/Perspectives/Virtue-is-its-Own-... . Increasing expected return for sin stocks is exactly what you want if you're serious about ESG investing.
Comment linking /Insights/Perspectives/Virtue-is-its-Own-Reward-Or-One-Mans-Ceiling-is-Another-Mans-Floor
on “BlackRock’s decision to dump coal signals what’s next”Submitted I Did Not Predict What Is Going on in Private Equity and Credit as a story · 2 points
HN discussionA summary of that paper from the authors is here: https://www.aqr.com/Insights/Research/Journal-Article/Buffet... . They work at AQR, a firm which is notable for being one of the only successful hedge funds to actually publish meaningful research. The paper's conclusion is noteworthy: > The efficient market counterargument is that Buffett was simply lucky. Our findings suggest that Buffett’s success is neither luck…
Comment linking /Insights/Research/Journal-Article/Buffetts-Alpha
on “Compounding Knowledge”Submitted Rebuffed: A Closer Look at Options-Based Strategies as a story · 2 points
HN discussionThe number one issue I have with a lot of finance newsletters is the lack of historical context so I think it's extremely valuable you featured historical data right next to the daily data to give context on how small daily moves actually are (minus this latest bout of volatility). I think that has a lot of overlooked behavioral value, why not also feature 20 & 30y data, considering this is the time series many youn…
Comment linking /Insights/Perspectives
on “Turning my obsession in the stock market into a side project”Submitted Buffett's Alpha (2013) as a story · 2 points
HN discussionMind suggesting the economists to read, rather than just suggesting he is reading the wrong economists? I'm admittedly naive in this subject, but the name calling doesn't help. On the second point - there is solid evidence that, yes there are ways to pick stock besides JUST analyzing the company - see Momentum investing https://www.aqr.com/Insights/Research/Journal-Article/Fact-F... I've seen plenty of critics of th…
Comment linking /Insights/Research/Journal-Article/Fact-Fiction-and-Momentum-Investing
on “Introduction to Augur, an open-source, decentralized betting marketplace”Submitted Can Machines Time Markets – The Virtue of Complexity in Return Prediction as a story · 2 points
HN discussionIf by total market you mean the total world market (i.e. MSCI ACWI), that's about as risk averse as you can be while still being in equities. Total US market alone is a higher risk choice: https://www.aqr.com/Insights/Perspectives/The-Long-Run-Is-Ly...
Comment linking /Insights/Perspectives/The-Long-Run-Is-Lying-to-You
on “Why in the world would you own bonds?”Submitted Why Not 100% Equities as a story · 2 points
HN discussion> You can reduce your microeconomic risks by making investments in and around your sector of occupation. Especially when betting against yourself. Or I can just put my money in something like VTI (total US stock market) or VT (total world stock). Effectively does the same thing with almost zero effort. One thing I don't really like about the comments here is how insistent people are in doing something specific as op…
Comment linking /Insights/Perspectives/Why-Not-100-Equities
on “Nevada’s public employee pension fund invests passively and beats peers (2016)”Submitted The Illiquidity Discount? as a story · 2 points
HN discussionhttps://www.aqr.com/Insights/Perspectives/Value-Spreads-Back... I’d be cautious that you are about to get a wicked mean reversion.
Comment linking /Insights/Perspectives/Value-Spreads-Back-to-Tech-Bubble-Highs-Are-You-People-Crazy
on “Nevada’s public employee pension fund invests passively and beats peers (2016)”Submitted 2016 Was Not a Particularly Volatile Year as a story · 2 points
HN discussion> How does that explain Warren Buffet’s spectacular success? Buffett buys “cheap, safe, high-quality stocks” with leveraged “financed partly using insurance float with a low financing rate” [1]. TL; DR He’s doing private equity with discipline. [1] https://www.aqr.com/Insights/Research/Journal-Article/Buffet...
Comment linking /Insights/Research/Journal-Article/Buffetts-Alpha
on “Nevada’s public employee pension fund invests passively and beats peers (2016)”Submitted Looking for the Intuition Underlying Multi-Factor Stock Selection as a story · 1 points
HN discussionThis explains it pretty well: https://www.aqr.com/Insights/Perspectives/Virtue-is-its-Own-...
Comment linking /Insights/Perspectives/Virtue-is-its-Own-Reward-Or-One-Mans-Ceiling-is-Another-Mans-Floor
on “Fossil fuel divestment has ‘zero’ climate impact, says Bill Gates”Submitted AQR Research Archive as a story · 1 points
HN discussionthis explains it pretty well. https://www.aqr.com/Insights/Perspectives/Virtue-is-its-Own-...
Comment linking /Insights/Perspectives/Virtue-is-its-Own-Reward-Or-One-Mans-Ceiling-is-Another-Mans-Floor
on “Fossil fuel divestment has ‘zero’ climate impact, says Bill Gates”Submitted Size Matters, If You Control Your Junk as a story · 1 points
HN discussion
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