Machine Learning for Long Term Investing

AQR, manager of $200bb+ fund is on the cover of Bloomberg Businessweek this month with an in-depth defence of their factor-driven investing approach.  It's newsworthy because their main fund has declined 14% this year amid a rising market for its worst underperformance in its history.

A lot of "value investors" believe in buying statistically "cheap" companies that have lower P/E, P/B or EV/EBITDA for example vs the market. But what if the world has changed?  What if the backwards looking financial numbers are no longer as predictive as they once were in the past?  Technology is often intrinsically asset-light and the value of capital invested in the past deflates in value exponentially with Moore's Law, not just a few % per year with inflation in the old days.

Click below for Exclusive Content to learn more how we can capture these patterns using machine learning to have a truly intrinsic-value approach to investing not just a linear statistical metric driven  superficial-value investing approach that is not just out of fashion for the moment but is in reality dying as the world has changed.