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. The firm employs a robust Enterprise Risk framework, which provides for a strong governance structure and ensures independence in risk making decisions. We believe it’s important for Risk Management to interact closely with the Portfolio Management, Research, and Trading teams, working together in managing risk. 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.

Emerging Markets Hard Currency

Seeks excess returns through country, maturity, and currency selection across hard currency and local currency markets. While the strategy includes local currency investments, it takes no beta to local currency debt, engages in no overall duration or spread timing, and targets a beta of one to its hard currency benchmark.

Global Aggregate

Seeks excess returns through country, maturity, credit, and currency selection. The strategy targets the credit and duration profile of the benchmark and so does not seek to engage in duration timing or sector selection.

Global Governments

This strategy seeks excess returns through country, maturity, and currency selection. It engages in minimal duration timing.

High Yield Corporates

Investment themes in this strategy are primarily expressed by within-industry security selection. It does not seek to engage in duration or credit timing.

Investment Grade Corporates

Seeks to outperform a core or long duration corporate benchmark. Our investment themes are primarily expressed by within-industry security selection. The strategy does not seek to engage in duration or credit timing.

Unconstrained Bonds

A cash-benchmarked bond strategy that seeks to deliver positive absolute returns with low correlation to traditional market betas. The strategy primarily utilizes a broad suite of relative value fixed income sub-strategies spanning interest rates, credit, and foreign exchange markets. It also includes a small, dynamic, and diversified allocation to fixed income market risks such as duration, credit, and securitized exposures.

Core Plus

Strategy that seeks excess returns through country, maturity, credit, and currency selection. Out-of-benchmark sectors are strictly used to increase security selection breadth, while still targeting the credit and duration profile of the benchmark, and so does not seek to engage in duration timing or sector selection.

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.

Alternative Risk 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.

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 trade-off of our clients' investments. We provide investors a variety of options to achieve their ESG objectives. Find out more about our ESG solutions and philosophy.

Tax-Aware Investing

AQR’s tax-aware approach is informed by decades of research and experience managing traditional and alternative investment strategies. Our research has created new possibilities for U.S. taxable investors at the intersection of prudent investing, income tax planning, and estate tax planning. Learn more about our tax-aware approach and solutions.

Investment Vehicles

AQR strategies are available in a variety of investment vehicles, from offshore limited partnerships to mutual funds and model portfolios. We also offer tax-aware implementation of some of our strategies, which may help taxable investors better reach their after-tax investment goals.

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.