To create uncorrelated returns in a market-neutral strategy, the simplest approach is to be long and short approximately equal amounts of stocks, balanced by industry and country, which reduces exposure to market, country, and industry risk while allowing stock-picking skill to drive returns.

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Speaker

Cliff Asness

Evidence Quote

if you want to be uncorrelated, start out by being long and short, a very similar amount of stocks...mainly balanced by industry and country.

Source

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

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