AQR’s Cliff Asness Hails Return of ‘Basic Rational Investing’

Years of speculative excess are giving way to healthier markets where fundamentals now matter, boosting quant stock-picking strategies across the board, according to AQR Capital Management’s Cliff Asness.

While tariff-induced volatility has whipsawed the S&P 500 Index and hedge funds alike, it’s been a boon for quant approaches that go long and short across hundreds of stocks. Among the winners, the AQR Equity Market Neutral Fund has returned roughly 15% this year, data compiled by Bloomberg show.

It’s been a “tremendous return” for “basic rational investing,” Asness said on Bloomberg Television on Tuesday. “The market has rewarded good ...