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.
We rely on sound economic theory and analysis to help us deliver long-term, repeatable results.
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.
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.
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.
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.
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.
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.
AQR strategies are available to a variety of investors through an array of investment vehicles, from offshore limited partnerships to mutual funds.