" He continued: "A quant, on the other hand, has the ability to study thousands of stocks at once, and thus can hold much more broadly diversified portfolios.
Because quants hold so many stocks, ones that are even slightly misvalued may still make sense ...
Next page: Learn what Asness calls "the only free lunch in finance" Traditional professional investors--Asness calls them "quals"--search zealously for a handful of undervalued companies in which to invest.
They interview management teams, evaluate corporate strategies, and analyze demand for products and services.
And AQR--which makes its fortune, like other quants, by using high-speed computers and financial models of extraordinary complexity--has made a stupendous recovery in the past two years.