Cliff Asness And Jack Bogle Debate Active Management

While the conversation started with pension funds, if you get AQR Capital Management co-founder Cliff Asness and Vanguard Group founder Jack Bogle onstage together it’s inevitable that active management, and the fees that come with it, will come along for the ride.

Explaining why he thinks state pensions are in trouble, Bogle says that we’re looking at about 7% returns from stocks and 3% from bonds in the coming years, giving about 5% returns overall before we start talking about costs, an assessment Cliff Asness mostly agrees with.

“I’m approximately as gloomy,” said Cliff Asness. “I’m not as...