AQR's Asness: Equity Returns Will Be Lower Than in Past

The video discusses various investment strategies, including beta, mutual funds, and hedge funds. It highlights the trend of outflows from mutual funds and hedge funds, with a shift towards private equity. The speaker envisions a future dominated by Bogle-style and factor-based products. The risks and returns of private equity are analyzed, emphasizing the importance of real pricing over market pricing.

What is a key trend observed in the investment market regarding actively managed mutual funds?

• No change in the inflow or outflow of actively managed mutual funds

• Steady outflows from actively managed mutual funds

• Actively managed mutual funds outperforming the S&P 500

• Increasing inflows into actively managed mutual funds

What is the envisioned future for investment products according to the speaker?

• A world dominated by hedge funds

• A world with a mix of Bogle-style and factor products

• A world with no investment products

• A world with only actively managed mutual funds

What challenge is mentioned for long-only managers in expressing their investment views?

• They have too many options to express their views

• They have no constraints in expressing their views

• They can only express dislike by not owning a stock

• They can easily short stocks they dislike

What assumption about private equity is questioned in the discussion?

• Private equity will always generate higher returns than hedge funds

• Private equity is less risky due to frequent market pricing

• Private equity is a form of public securities

• Private equity is immune to market downturns

What is a reason given for investing in private equity despite its risks?

• It is immune to market fluctuations

• It is less volatile than public securities

• It provides a big return edge if believed

• It offers guaranteed returns