European Capital Partners - Cray-cray ? Discover this fund | European Capital Partners
Asset management and fund structuring boutique

Cray-cray ?

Aug 09, 2022

According to Cliff Asness, CIO of AQR Capital Management, global value spreads, measuring the valuation discount of the cheapest global stocks compared to their most expensive counterparts, have increased again over the past months and are back to the levels seen during to the peak of the Internet bubble. It is now to a point that the author asks himself :”Is everyone out there cray-cray ?” (www.aqr.com). Our (painful) experience is that valuations alone are not a good indicator of short term returns, especially when economic uncertainties are high as they are currently. We however agree that there are investment opportunities for patient investors who only invest in quality businesses trading at valuation discounts.

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