Overview

Our investment philosophy is based on three core principles, built on decades of research and experience. By applying these principles, we seek to deliver sustainable, long-term value for our investors.

Fundamental Investing

We rely on sound economic theory and analysis to help us deliver long-term, repeatable results. 

 

Systematically Applied

A disciplined methodology underlies everything we do.  Our investment process, built over 20 years, is based on a continuous process of design, refine, test, repeat.  

 

Thoughtfully Designed

In portfolio construction, risk management and trading, we seek additional value for our clients. Using both qualitative and quantitative tools, we’re meticulous in every detail of the investment process.    

 

Risk Management

Our Risk Management team oversees all aspects of both financial and non-financial risks including Market and Liquidity Risk, Counterparty Risk, Model Risk, Operational Risk, and Technology Risk. Our Chief Risk Officer reports directly to Cliff Asness, Managing and Founding Principal, and all risk decisions are subject to a clear governance structure, which emphasizes the team’s independence from other business units. We believe it’s important for Risk Management to interact closely with the Portfolio Management team, working as “two lines of defense” seeking the same objectives. Together, we aim to ensure that portfolios are manageable through sudden and severely adverse stress events.

Equities

For nearly two decades, our overall goal has been to build compelling and repeatable investments that are highly diversified across signals and regions, and within a risk-controlled framework.  We apply this systematic approach across our strategies, catering to the widespread investment needs of our clients.

Single-Style 

Strategies that provide pure implementations of individual styles, such as defensive, momentum and value.

Multi-Style 

These strategies harness the diversification and potential return benefits of investing in multiple well-known styles in an integrated fashion. 

Enhanced

These strategies seek to provide consistent excess returns over common benchmarks. They combine established signals backed by academic evidence with proprietary signals based on rigorous research.

Relaxed Constraint

Strategies that build on Enhanced, but broaden the implementation universe through use of limited shorting in a 130/30 context while remaining beta-1 products.

3-Alpha

These strategies differentiate by recognizing the inherent risks and opportunities that come with global equity investing. They pair our Enhanced Strategy alongside dedicated country and currency models for integrated alpha opportunities.

Fixed Income

We aim to generate consistent outperformance by systematically applying investment themes across securities. We believe that a multi-factor investment approach, harnessing underlying drivers of performance, will generate excess returns that are uncorrelated to other asset classes as well as traditional fixed income managers.

Core Plus

Strategies that seek to outperform market indices through security selection within sectors, but with limited duration timing or sector rotation.

Emerging Market Debt

We offer hard-currency sovereign portfolios, using country, maturity and security selection to identify securities deemed attractive on the basis of systematic factors.

Global Aggregate

Strategies that seek to outperform market indices through duration-neutral country, maturity and currency selection, as well as issuer selection with limited duration/spread timing.

High Yield

We offer diversified portfolios, using within-sector security selection to identify securities deemed attractive on the basis of systematic factors.

Alternatives

As a pioneer in alternative investing, AQR has a long track record of managing the complexities of these types of strategies. By investing long and short, and balancing exposure to factors and asset classes, our alternative strategies are built to seek returns in both up and down markets. We offer both absolute return strategies, which target zero exposure to traditional markets, either at all times, or on average; and total return strategies, which maintain some exposure to traditional markets. 

Absolute Return

Absolute Return Strategy

Provides exposure to highly diversified portfolios, aggregating nearly all of AQR’s strategies in a multi-strategy format.

Arbitrage Strategies

We offer convertible, merger and event-driven arbitrage strategies, or a diversified portfolio combining these strategies.

Credit Strategies

Seeks positive absolute returns by investing both long and short in a diversified portfolio of credit instruments. 

Equity Market Neutral

Employs a multi-factor, market-neutral investment process based on AQR’s broadest global stock selection capabilities.

Global Macro

Invests in major asset classes based on prices and macroeconomic fundamentals, using a variety of quantitative and qualitative inputs.

Hedge Fund Premia

Seeks to efficiently capture a diversified set of classic hedge fund styles and deliver them to investors in a transparent and liquid vehicle.

Managed Futures

A diversified strategy that seeks to take advantage of price trends in global asset classes.

Opportunistic

Identifies securities that show extreme undervaluation based on both our quantitative models, as well as a thorough qualitative review.

Real Return

Seeks to provide an inflation-hedging, positive real return through a diverse mix of strategies and assets.

Style Premia

Seeks to harvest the return premia from well-known factors such as value, momentum, carry and defensive across asset classes and geographies.

Tax-Advantaged Equity Market Neutral

Seeks to deliver particular alternative strategies with a focus on being tax-efficient and potentially tax-beneficial across an investor's entire portfolio.

Volatility Strategies

Invests on the volatility risk premium and can be applied as either a standalone strategy, a buy-write, or to enhance traditional equities.

Total Return

Diversified Growth Strategies

Offers a wide range of return sources including market risk premia, alternative risk premia, and alpha, with less of the reliance on rising prices for traditional assets that traditional diversified growth strategies can have.

Long-Short Equity

Employs our multi-factor investment process based on AQR’s broadest global stock selection capabilities, while maintaining a consistent net long exposure to the market.

Risk Parity

Invests across global asset classes by risk allocation as opposed to capital, seeking to build a portfolio that is both broadly diversified, but not overly reliant on any single asset class.

Multi-Strategy

Offers a diversified approach to alternatives investing, seeking to provide broad exposure to several different AQR strategies at the same time.

ESG

AQR is committed to helping our clients achieve their Environmental, Social and Governance (ESG) goals. Our primary objective for considering ESG issues is improving the risk/return tradeoff of our clients' investments. 

ESG Solutions and Policy

We provide investors a variety of options to achieve their ESG objectives. Find out more here about our ESG solutions and philosophy.

Investment Vehicles

AQR strategies are available to a variety of investors through an array of investment vehicles, from offshore limited partnerships to mutual funds. 

Institutional Investment Vehicles

We serve institutional investors—including pension funds, defined contribution plans, insurance companies, endowments, and foundations—with a range of vehicles to suit to their organization’s governance, pricing and liability needs.
  • Private Funds
  • Separate Managed Accounts
  • Collective Investment Trusts

Registered Funds

We make many of our strategies accessible to individual investors through AQR-sponsored mutual funds, and offer options for investors in Europe and in Australia. Contact us to learn more.