The Tax Benefits of Pre-Tax Alpha
March 18, 2026
This paper shows that pre-tax alpha may enhance tax benefits in tax-aware long-short strategies by accelerating NAV growth and creating new positions that support loss realization. The result is meaningfully higher after-tax wealth—especially at longer horizons and higher levels of leverage.
Tax Aware
Misconceptions about Tax-Aware Long-Short: Misleading Parallels with Direct Indexing, Part III
October 12, 2026
In the final installment of our series, we address two misconceptions about the risks and trade-offs involved in tax-aware long-short strategies. We explain why tracking error is necessary to pursue pre-tax alpha and why effective portfolio construction requires balancing expected returns, risk, costs, and taxes rather than simply maximizing realized losses.
Tax Aware
Misconceptions about Tax-Aware Long-Short: Misleading Parallels with Direct Indexing, Part II
September 28, 2026
In our previous post, we addressed two misconceptions about the trading and hedging mechanisms of tax-aware long-short strategies. Here, we clarify that unlike direct indexing, the tax benefit of tax-aware long-short strategies comes primarily from gain deferral rather than loss harvesting, and that higher pre-tax alpha may materially enhances the strategy’s tax benefits.
Tax Aware
Misconceptions about Tax-Aware Long-Short: Misleading Parallels with Direct Indexing, Part I
September 21, 2026
Tax-aware long-short (TA LS) investing is often viewed as an extension of direct indexing, but the two approaches have fundamentally different objectives and mechanics. We explain why TA LS strategies trade to pursue alpha rather than simply harvest losses or closely track a benchmark.
Macroeconomics
Inflation Redux?
September 15, 2026
This article updates AQR’s earlier analysis on inflation sensitivities and inflation protection, highlighting the benefits of commodities and trend following strategies and how to evaluate different implementations. It asks, “How should you prepare for the possibility of another global inflation shock?”
Machine Learning
In the Age of AI, A Quant’s Edge is Human
September 10, 2026
While quantitative investing has long relied on technology and data, AQR argues that the AI era makes human capabilities even more valuable. The piece explores why creativity, emotional intelligence, and the ability to lead and connect with others may prove to be the most enduring competitive advantages in finance and beyond.
Tax Aware
Not Locked Up: Accessing Liquidity in Tax-Aware Portfolios
September 8, 2026
Liquidity need not be an all-or-nothing decision. Our latest research explores how investors may be able to access meaningful cash from tax-aware long-short strategies while remaining invested and retaining key portfolio attributes.
ESG Investing
Investing in a Warming World
September 1, 2026
Popular carbon metrics can make portfolios appear to be decarbonizing even when underlying emissions change little. This paper explains why investors should distinguish between relative carbon exposure and financed emissions when evaluating climate-aware investment strategies.
Tax Aware
Liquidity without Liquidation
August 28, 2026
This paper shows that investors may be able to access meaningful liquidity from tax-aware strategies while preserving the remaining portfolio’s tracking error, leverage, and pre-tax return potential. An adaptive withdrawal process may also better manage capital-gain realization than a fixed withdrawal schedule.
Strategic Asset Allocation
The Case for Taking a Total Portfolio Approach
August 25, 2026
As traditional sources of return face increasing challenges, investors may need to look beyond long-only active management and private equity. We argue that portable alpha, viewed through a total portfolio approach, can offer a more efficient path to enhancing returns while improving liquidity, fees, and portfolio outcomes..
Factor/Style Investing
Academic Alpha
August 19, 2026
This paper reintroduces style premia investing—or “academic alpha”—and explains how well-researched, skillfully implemented strategies can provide liquid, transparent, and cost-effective sources of uncorrelated returns. It highlights how continued innovation in signal design, portfolio construction, and multi-asset implementation can strengthen their role as long-term portfolio diversifiers.