In this article, we will take a look at the 10 best dividend
stocks to buy according to billionaire Cliff Asness.
Cliff Asness, hedge fund manager and investment guru, is the
manager and co-founder of AQR Capital Management, the hedge fund whose 13F
holdings we will be going over in detail in this article. Asness graduated from
the University of Pennsylvania with dual degrees in Economics and Engineering,
and later enrolled in and graduated from the University of Chicago, for his MBA
and Ph.D. in Finance. During his academic career, Asness worked as a research
assistant for Eugene Fama, a theorist of efficient markets.
Before founding AQR Capital Management, Asness began working
as a manager of Goldman Sachs Asset Management’s (GSAM) quantitative research
desk when he was 24 and still a Ph.D. student. He, along with two friends from
the University of Chicago, went on to develop “models to evaluate risk in
currencies, bonds, and entire economies.” While he was working as a manager at
GSAM, Asness pulled in a $10 million investment to employ computer-driven
models developed by his team to invest in the market. This initial investment
eventually reached $100 million, when Goldman Sachs opened the fund to the
public under the name of the Goldman Sachs Global Alpha Fund. This new fund was
what sped up Asness’s career. He managed the fund and aimed to make it rake in
money regardless of the market’s direction, but the fund declined by 2011 and
was shut down despite once having been “one of the biggest and best performing
hedge funds in the world.”
AQR Capital Management is one of the hedge funds more prone
towards diverse portfolios, and adopted factor-investing to boost the fund’s
quantitative approach to investments. The hedge fund is also prone to
alternative investment strategies, like risk parity strategies focusing on
volatility instead of capital allocation. AQR Capital Management remains to
this day, one of the giants in the financial world, and was managing around
$140 billion as of the end of March. The fund’s portfolio value is currently
over $61 billion.
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