Overview

For individuals and their families, wealth compounds after tax. AQR believes that investors have a better chance of meeting their goals when their asset managers take taxes into account. We call this being “tax-aware.”

26 Years
Managing Long/Short Strategies
9 Years
Managing Long/Short Tax-Aware Strategies
~$45.3bn
Long/Short Tax-Aware AUM 1, 2

Source: AQR. All figures are approximate as of 9/30/2025; AUM includes assets managed by AQR and its advisory affiliates.
1. The ~$45.3 billion represents assets invested by our clients (as compared to Regulatory Assets Under Management reported in the Form ADV, which includes the gross market value of all long and short positions in a long-short portfolio).
2. The ~$45.3 billion represents assets invested by our clients in long/short tax-aware private commingled vehicles and separately managed accounts. We also manage ~$22.4 billion in tax-aware investments in long-short and long-only mutual funds and long-only strategies in separately managed accounts.

New Ways To Compound Wealth

AQR's tax-aware strategies go a step beyond solutions that have long been used by taxable investors.

Tax-Aware Equities

AQR Flex is a diversified equity portfolio designed to help investors build, diversify, and preserve wealth.  

Traditional long-only tax-loss harvesting strategies, like direct indexing, generally realize tax benefits during early years of investment or in falling equity markets. AQR Flex seeks to generate excess returns and tax benefits that are potentially larger and longer lived. Unlike conventional equity strategies, we employ long and short positions, allowing us to unlock more opportunities to realize losses. 

Investors may use these strategies in an attempt to: 

  • Add alpha and gain control over highly appreciated portfolios

  • Diversify concentrated asset holdings

  • Amplify charitable giving 
Tax-Aware Alternatives

AQR Tax-Aware Alternatives seek to eliminate the typical tax burden of hedge fund strategies. 

By combining alternative strategies with tax-aware implementation, our solutions may allow investors to access diversifying strategies in a more tax efficient way. In some cases, tax aware alternatives may even help lower an investor’s overall taxes. We manage a range of investment strategies, including long/short equity, market neutral, trend following, and multi-strategy offerings. 

Investors may use these strategies in an attempt to: 

  • Reduce exposure to equity market risk 

  • Capture additional sources of return 

  • Complement existing alternatives allocations  
Systematic
Emphasizes research and precision throughout the investment process and allows us to be transparent with our investors
Diversified
Helps us manage risk and build higher-conviction portfolios by applying our investment philosophy broadly and without bias
Long/Short
Allows our portfolios to take advantage of both positive and negative views, and to potentially further improve investor after-tax outcomes

Contact Your AQR Representative to Learn More

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