AQR Capital Management (AQR) has launched the AQR Diversifying Strategies Fund, which is designed to be a single solution to gain exposure to liquid alternatives with attractive long-term risk-adjusted returns by investing in a portfolio of AQR’s alternative mutual funds.
Leveraging AQR’s 20-year track record in alternative investing and position as a leader in liquid alternatives, the Fund is intended to serve as a complementary addition to an investor’s traditional stock and bond portfolio. The Fund will offer exposure to multiple alternative return sources that are independent from traditional stock and bond markets, which creates the potential to do well in various market environments.
“We developed this Fund to help investors effectively meet the challenge of building an alternatives allocation, which can be a critical piece of a more stable portfolio,” says David Kabiller, Co-Founder of AQR. “By providing access to a diversified range of alternatives strategies, geographies and asset classes in one comprehensive vehicle, we believe the Fund offers our clients a valuable way to further their long-term investing goals.”
The Fund is managed by AQR’s Multi-Strategy team, which has deep expertise in creating custom solutions for some of the most sophisticated investors around the globe.
“Our approach is grounded in AQR’s systematic and disciplined investment process,” says Ashwin Thapar, Principal at AQR. “We aim to thoughtfully design the portfolio to provide diversified, systematic exposure to alternative return sources, with meticulous portfolio construction, risk management and trading to seek additional value for our clients.”
The Fund will provide exposure to two different types of alternative strategies – active multi-asset strategies and absolute return strategies. Active multi-asset strategies like risk parity will provide tactical, risk-balanced, active global market exposure. Absolute return strategies, such as managed futures, will seek to harvest well-established risk premia and provide exposure to less accessible, more proprietary sources of return.
The underlying AQR mutual funds that will comprise the portfolio are:
• AQR Multi-Asset Fund
• AQR Equity Market Neutral Fund
• AQR Global Macro Fund
• AQR Managed Futures Strategy HV Fund
• AQR Style Premia Alternative Fund
• AQR Diversified Arbitrage Fund
