AQR Cuts Returns Outlook Now That Everything’s More Expensive

  • Traditional 60/40 portfolio will deliver 2.4% over next decade
  • Firm warns outlook doesn’t warrant ‘aggressive’ tactical moves
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The quants at AQR Capital Management are here again to warn investors of “soberingly low” returns. A year after their last missive, they’re even more sober.

The $186 billion quantitative hedge fund this week updated its medium-term outlook for the major asset classes. The predictions are for lower annualized returns across the board compared with their projections a year earlier: