Man vs. Machine on Wall Street: How Computers Beat the Market
Cliff Asness’s Applied Quantitative Research—which makes its fortune, like other “quants,” by using high-speed computers and financial models of extraordinary complexity—has made a stupendous recovery in the past two years. At the end of 2010, AQR had $33 billion in assets under management. Its funds’ performance was up nearly 20 percent last year, after being up 38 percent in 2009. This is all the more striking because many analysts believe the quants helped cause, or at least exacerbated, the meltdown by giving traders a false sense of security.
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The Atlantic
Published: Mar 29, 2011
Length: 16 minutes (4,191 words)