(Grubstreet) Following the launch of the WisdomTree 90/60 U.S. Balanced Fund (NTSX) , Cliff Asness, co-founder of AQR Capital Management, commented on Twitter that although he had a “22-year head start” from a research perspective (linking to a piece he wrote in December of 1996 serving as Goldman Sachs Asset Management’s director of quantitative research), WisdomTree managed to “beat him” in launching this type of levered 60/40 idea in an exchange-traded fund.
In Asness’s 1996 piece, titled “ Why Not 100% Equities: A Diversified Portfolio Provides More Expected Return per Unit of Risk ,” one of his core arguments was that an “investor willing to bear the risk of 100% equities can do even better with a diversified portfolio.”