Archive · 17 Nov 2025
Hedge Fund Titans Clash on X Over Performance Metrics
Two big hedge fund managers, Cliff and Bob, argued on X about how well Cliff's company is doing.
Bob said Cliff's company isn't as good as it seems, using a simple way to count money that Cliff said was wrong.
Cliff said Bob's comparison was like comparing apples and oranges, and his analysis was too simple and maybe even trying to sell something else.
They had a loud argument online for everyone to see.
Cliff Asness (AQR Capital Management) publicly criticized Bob Elliott's analysis of AQR's performance strategies on X.
Elliott had challenged AQR's performance evaluation methods, comparing its Managed Futures strategy unfavorably to the SG Trend Index using gross returns.
Asness accused Elliott of using superficial, flawed, and potentially biased analysis, particularly objecting to the use of gross instead of net returns.
Asness argued that AQR's trend-following strategies differ from the SG Trend Index due to variations in strategy types and risk characteristics.
The exchange highlights differing views on investment performance measurement and the interpretation of comparative strategy data.
- Who
- Cliff Asness (AQR Capital Management) and Bob Elliott (Unlimited Funds)
- What
- A public dispute on X concerning investment performance evaluation and strategy comparison, with Asness rebutting Elliott's analysis.
- When
- November 14, 2025
- Where
- X (formerly Twitter)
- Why
- Elliott publicly criticized AQR's performance evaluation methods and compared its strategy unfavorably to the SG Trend Index; Asness responded with a sharp rebuttal, calling Elliott's analysis flawed and potentially biased.
Bob Elliott's Stance
Cliff Asness's Rebuttal
Performance Evaluation Methods
Bob Elliott's Stance
Claims there's overwhelming evidence of no institutional manager outperformance persistence beyond random chance, and AQR's strategy is no different. Critiques AQR's performance evaluation methods.
Cliff Asness's Rebuttal
Accuses Elliott of misunderstanding performance measurement basics and using flawed, overly personal analysis. Argues for technical accuracy in performance comparisons and highlights AQR's specific strategy improvements.
Use of Returns Data
Bob Elliott's Stance
Compared AQR's Managed Futures strategy against the SG Trend Index using gross of fees returns, showing a rolling six-month return difference fluctuating around zero over a decade.
Cliff Asness's Rebuttal
Objects to the use of gross returns instead of net returns, stating it distorts comparisons. Claims the numbers cited by Elliott did not match publicly available data and implied a discrepancy that favored Elliott's narrative.
Strategy Differences
Bob Elliott's Stance
Compared AQR's performance unfavorably to the SG Trend Index, a benchmark for trend-following strategies.
Cliff Asness's Rebuttal
Argues that AQR's trend-following strategies differ from the SG Trend Index because the latter has incorporated more carry-like strategies with different risk characteristics. Highlights AQR's focus on economic trends and alternative trends, and efforts to preserve convexity.
- Participants
- Cliff Asness (AQR Capital Management), Bob Elliott (Unlimited Funds)
- Platform
- X (formerly Twitter)
- Date of Exchange
- November 14, 2025
- Key Dispute
- AQR's performance evaluation methods and strategy comparison
- Benchmark Mentioned
- SG Trend Index (SocGen CTA Index)