JP Morgan has been selected by investment management firm AQR Capital Management, LLC (AQR), adviser to the AQR Funds, to provide prime custody and fund administration to its newly launched mutual fund – the AQR Multi-Strategy Alternative Fund. As described by AQR, the Fund seeks exposure to the following sub-strategies: Convertible Arbitrage, Event Driven (including Merger Arbitrage), Fixed Income Relative Value, Equity Market Neutral, Long/Short Equity, Dedicated Short Bias, Global Macro, Managed Futures and Emerging Markets.
AQR, which was founded in 1998, is based in Greenwich, Connecticut and indicates as of June 30, 2011 that it manages approximately USD40 billion in both long-only and hedge fund assets for some of the largest institutional investors in the US, Europe, Australia and Asia. According to AQR, the Fund was created to provide mutual fund investors with access to several alternative and innovative investment strategies.
“We are pleased to be launching this fund which leverages JP Morgan’s integrated offering. This is a complex fund spanning multiple asset classes including equities, bonds, currencies, commodities, credit derivatives, convertible securities, futures, forwards, options and swaps. Our decision to partner with JP Morgan reflects our confidence in their ability to support us across this multi-faceted and diverse set of assets and strategies,” says David Kabiller (pictured), Founding Principal of AQR Capital Management, LLC, the investment adviser to AQR Funds.
JP Morgan’s Prime Custody Solutions platform combines prime brokerage, global custody and other securities services through a single technology portal and integrated client service model. The group leverages two of the market-leading JP Morgan franchises: JP Morgan Worldwide Securities Services, a premier securities servicing and fund administration provider with approximately USD16.9 trillion in assets under custody and JP Morgan Prime Brokerage, a market-leading global prime brokerage. Prime Custody Solutions provides tools to help mutual funds comply with the ’40 Act and SEC requirements regarding bank custody and shorting and/or leveraging alternatives strategies provided by a broker dealer. JP Morgan’s offering includes automated collateral management, consolidated transaction and reporting technology utilising a single portal and integrated customer service across all products.
Devon George-Eghdami, Managing Director and Head of Prime Custody Solutions, says: “We are delighted to expand this relationship with AQR. The Fund requires integrated functionality across equity prime brokerage, futures and options, custody and fund administration to support its complex, alternative strategy which JP Morgan is uniquely positioned to provide.”
