AQR’s Next Big Move Could Be Into Private Equity

The transcript discusses the concept of the private world in investing, highlighting the necessity of private equity as an asset class. It explores the jealousy towards private equity's lack of mark-to-market requirements and considers the potential benefits of illiquidity. The speaker speculates on whether illiquidity could be a feature rather than a bug, suggesting it might lead to better investor behavior. Challenges in diversification within private equity are addressed, including the lemons problem. The transcript concludes with thoughts on future prospects and the need for systematic processes in private equity investment.

What does the speaker imply about the relationship between illiquidity and investment performance?

What challenges does the speaker mention regarding creating a diversified lower fee exposure to the private world?