Probably depends on whether you think value and carry assets will make a comeback. I think their investment philosophy is pretty set. But idk much about how the details of how they invest.
From what I know, their equity book took a little bit of a hit with the downturn, but other portfolios are still doing fine. Though the effects of the equity book will probably cause a waterfall of lower hiring for a little bit
They’ll be fine. They’ll adjust to the climate and I believe continue to see a reduction in AUM. What I think is clear however is they’ll bounce back and continue to be profitable. The people there are extremely brilliant and the philosophy of the company revolves around academia. I have no doubt they’ll succeed but the road back there will be a very bumpy one.
I might have missed this--did something happen? Were bad returns published or something
Pretty sure equities didn’t poorly during beginning of covid
AQR will endure as a business, the investment themes have cycles that are pronounced and can last a long time. We are well capitalized even after these couple of dismal years. The firm will almost certainly reduce headcount meaningfully in the weeks to come
How certain are you about the layoff rumor? People I'm close with have been speculating a layoff around next January like previous years - what makes you think it will come so soon?
Unfortunately unsubstantiated rumor. But from two independent and fairly senior sources. Even then a speculation for sure. Practically it seems we need to right-size the business anyway, so the precise timing being accurate is probably far less likely than the event itself
engineering at AQR sucks lol and is value even real anymore?
Do you have a particular concern? I believe Quant firms will take a higher share of assets vs. traditional long/short