(HedgeCo.Net) Cliff Asness, longtime quant investing luminary and co?founder of AQR Capital Management, is steering his firm ever deeper into algorithmic territory — a shift that could redefine the role of human discretion in quantitative asset management. Meanwhile, AR Capital (formerly American Realty Capital), once a well?known direct investment sponsor in real estate and business development companies, has largely receded from headlines — its most recent public footprint stemming from regulatory and capital?raising headwinds.

Asness, AI & the Quant Vanguard

In recent months, Asness has openly described AQR’s gradual transition from human?driven rules to machine?guided systems as “surrendering more to the machines.” Financial Times The firm is increasingly entrusting AI models with factor weightings, signal detection, and portfolio construction — tasks that its co?founder once reserved for human oversight. Bloomberg+2Bloomberg+2

That evolution underscores a larger gamble: giving algorithms greater autonomy comes with shorter interpretability in turbulent markets. But with quant strategies facing pressure, Asness contends improved returns can justify the opacity. Financial Times+2Bloomberg+2

On the performance front, AQR’s flagship funds have delivered robust gains in 2025. Its Apex multi?strategy vehicle gained 4.0% in September alone and is up about 15.6% year to date. Reuters Through the first half of 2025, its Delphi long/short equity and Helix trend strategies also outpaced broader benchmarks. CNBC In 2023, AQR’s “Absolute Return” strategy posted an 18.5% net return, thanks in part to strong value stock bets. CNBC+1

Asness remains cautious on crypto: he recently labeled bitcoin a speculative bubble unless clear “real?world use cases” emerge beyond trading. NBC New York+1

In public commentary, he frames generative AI not as a revolution but as an advanced statistical tool — albeit one that the financial industry risks overselling. Pensions & Investments+1

AR Capital: From Prominence to Dormancy

AR Capital, once known as American Realty Capital and later rebranded to reflect expansion beyond real estate, built a reputation as a sponsor of REITs and business development companies. Business Wire Over time, it navigated regulatory pressure and shifting investor appetites.

In November 2015, AR Capital announced it would suspend new capital raising in several of its investment programs, citing market and regulatory uncertainty — though it would continue managing existing portfolios totaling about $19?billion. PR Newswire That same year, a planned transaction with Apollo Global Management to form a new asset management platform was mutually terminated, with AR buying back a preferred stake in a related entity. PR Newswire

Since then, AR Capital has remained largely off the front pages. While it still retains some legacy investments, it has not made major new strategic pivots or drawn renewed attention in alternative asset circles.

Outlook & Implications

Cliff Asness’s embrace of AI is part of a broader trend among quantitative firms seeking to scale intelligence