Every investment strategy, particularly those known to more than two people, has a bad left tail (the risk of large losses), and the larger and more popular a strategy becomes, the worse its left tail becomes because the strategy's performance depends partly on the actions of similar investors.

causalpending

Speaker

Cliff Asness

Evidence Quote

every strategy...that doesn't have a bad left tail...the bigger and the more popular, the worse the left tail...if someone very similar to you...panics and sells, you're going to suffer.

Source

The Bridge Ep. 11: Expensive Isn't a BubbleiCapital
Created: 8/12/2026, 6:23:51 PM

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