What Is Tax-Aware Investing?
For individuals and their families, wealth compounds after tax. AQR believes investors are more likely to reach their long-term goals when taxes are considered throughout the investment process. We call this being “tax-aware.”
Unlike conventional tax-aware approaches, AQR invests both long and short, which allows us to implement our investment views more fully while seeking to improve pre-tax and after-tax outcomes.
AQR's Approach to Tax-Aware Investing
Taxes can create a gap between how your investments perform and how your wealth grows. Our tax-aware capabilities are designed to help close this gap. AQR’s tax-aware offering is driven by AQR’s time-tested, systematic process developed over 28 years of investment management research and experience.
Source: AQR. All figures as of 6/30/2026.
Disciplined approach to implementing our research insights consistently across portfolios and through time.
Portfolios that hold hundreds of positions, designed to reduce reliance on any single opportunity or outcome.
The ability to express investment views more fully, manage risk, and pursue returns across market environments.
Explore Our Offering
AQR Flex is a diversified equity portfolio designed to help investors build, diversify, and preserve wealth.
Unlike conventional equity strategies, Flex employs long and short positions, allowing us to better express our investment views. This has the potential to improve both pre-tax and after-tax returns for the long-term.
We offer range of diversifying strategies that seek to address the typical tax burden of hedge funds.
By combining institutional-quality alternatives with tax-aware implementation, our solutions may allow investors to access diversifying strategies in a more tax-efficient way. We manage a range of strategy types, including long/short equity, trend following, and multi-strategy.
Featured Insights
Diversification does not eliminate the risk of experiencing investment losses. The investment strategies and themes discussed herein may not be suitable for all investors, please consider your specific financial profile and consult your financial advisor prior to investing.
This webpage is intended for informational purposes only and should not be construed as legal or tax advice, nor is it intended to replace the advice of a qualified attorney or tax advisor. The recipient should conduct his or her own analysis and consult with professional advisors prior to making any investment decisions.
Like any investment strategy designed to generate pre-tax returns, tax-aware investment strategies are subject to the risk of pre-tax returns meaningfully underperforming expectations.
Unavailability of potential tax benefits: The expected tax benefits associated with the tax-aware strategy may be less than expected or may not materialize due to the economic performance of the strategy, an investor's particular circumstances, prospective or retroactive changes in applicable tax law, and/or a successful challenge by the IRS. In the case of an IRS challenge, penalties may apply.