Quant Firm AQR Spots Deal of the Century in Emerging Markets

  • Valuations show EM stocks at their cheapest in 25 years
  • US stocks have not always been decade winners, AQR says

Cliff Asness

Photographer: Joe Buglewicz/Bloomberg
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AQR Capital Management LLC, the $95 billion firm founded by renowned quantitative investor Cliff Asness, says US dominance of equity markets is about to end, ushering in a wave of diversification that will benefit emerging markets for years to come.

The Greenwich, Connecticut-based manager of quant and hedge funds says its models show developing-nation equities offer the cheapest relative valuations since the turn of the century and will outperform the US over the next decade.