Institutional investors underestimate risk, warns AQR

Institutional investors underestimate the risks associated with their illliquid investments, warns Principal at AQR Capital Management Daniel Villalon in a new white paper. AMWatch interviewed him on this, and whether that claim is easy for him to make, given his position at a liquid quant powerhouse.

Daniel Villalon, an AQR Principal and Global Co-Head of the Portfolio Solutions Group. | Photo: PR / AQR Capital Management

Expected returns on traditional assets are lower than their historical averages, yet the same can't be said for expected risks.

This is the message in a new white paper written by the portfolio solutions group at AQR Capital Management, led by Daniel Villalon, a Principal at the quant manager and global co-head of the portfolio solutions group alongside Finnish native Antti Ilmanen.

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