Value Investing with Legends

In this episode, Cliff Asness joins Tano Santos and Michael Mauboussin for a conversation that spans the evolution of quantitative investing, lessons from market crises, and the enduring tension between risk and behavioral explanations in finance. From his formative years at the University of Chicago under Gene Fama to building AQR into a quant powerhouse, Cliff reflects candidly on theory, performance, and how markets may have become less efficient in recent years.   Key Topics: Tano and Michael return from sabbatical and reflect on recent academic and classroom experiences (0:00) Overview of Cliff’s career and contributions to quant investing and academic finance (1:13) Cliff recounts his underachiever label, how standardized tests changed his path, and why he chose Penn’s M&T program (2:54) How Cliff’s coding work for Andy Lo inspired his academic path and led to Chicago (5:03) A breakdown of the 1992 and 1993 Fama-French papers, and how they reshaped asset pricing (8:45) Cliff discusses the theoretic