AQR Capital Management
In 2019, AQR Capital Management, LLC was named "Asset Manager of the Year" at the Risk.net Operational Risk Awards. AQR is an investment management and advisory firm. This is a large firm, employing hundreds of advisory employees throughout its branches in the U.S., Asia, Europe and Australia. The firm is headquartered in Greenwich, Connecticut.
Services at AQR Capital Management include the management of both traditional and alternative investment strategies, proprietary investment analysis, model portfolio recommendations and more. The firm principally serves pooled investment vehicles, investment companies and other institutional clients. This is a fee-based firm.
If AQR doesn't seem like a good fit for your investment goals, consider working with a personal financial advisor.
AQR Capital Management Background
Established in 1998, AQR Capital Management has been in business for more than two decades. The firm was created by a trio of founding principals: Cliff Asness, David Kabiller and John Liew. AQR Capital Management is owned by AQR Capital Management Holdings, LLC, a financial services holding company. AQR Capital Management Holdings is, in turn, indirectly owned by Asness. Across AQR’s team of advisors, there are tons of certifications, including, but not limited to, chartered financial analysts (CFAs) and certified public accountants (CPAs) and certified financial planners (CFPs).
In addition to managing hedge funds and other investment entities, AQR also works with pension and profit-sharing plans, charitable organizations, pooled investment vehicles, other investment advisors, insurance companies, government entities and sovereign wealth funds.
AQR Capital Management Investment Philosophy
At its heart, AQR is a quant firm, as it uses quantitative research to analyze potential investments and make choices about how to use the fund’s money. This makes sense, since the three founders met while working on PhDs, which tend to be very quantitative and analytical in nature. The firm uses a set of valuation, momentum and other factors to gain insights into securities.
Within the alternative investment space, AQR uses both absolute return and total return models, while the division making traditional investments uses both equity and fixed-income. Both U.S. and global investments are part of the strategy at AQR.
Largest Hedge Funds Managed by AQR Capital Management
AQR Style Premia Master Account
AUM: $8,476,551,585
Minimum: $5,000,000
Beneficial Owners: 46
AQR Delta Master Account
AUM: $1,375,102,074
Minimum: $5,000,000
Beneficial Owners: 507
AQR Global Risk Premium Master Account
AUM: $4,780,567,620
Minimum: $5,000,000
Beneficial Owners: 34
AQR Absolute Return Master Account
AUM: $3,073,604,908
Minimum: $5,000,000
Beneficial Owners: 41
Fees at AQR Capital Management
There are various fees and fee structures for funds at AQR. This includes both asset-based fees and performance-based fees.
Advisory fees for AQR funds range up to 1.45% of AUM. Fees for AQR UCITS range up to 1.40%, and may include a performance fee of up to 15% of profits. Sponsored funds have an annual fixed fee of up to 2% of AUM and may include a performance fee of up to 30% of profits.
Managed accounts will have an asset-based free based on the nature of the portfolio, generally up to 1.00%. These accounts may also have a performance-based fee of up to 30% of profits.
What to Watch Out For
According to AQR Capital Management’s SEC-filed Form ADV, the firm has six disclosures on its legal and regulatory record. These include events like violating futures contract position limits and delayed notifications of net short positions to the Swedish Financial Supervisory Authority (SFSA) and the Netherlands Authority for the Financial Markets (AFM). As a result of these distinctly separate events, AQR was fined various amounts.
Remember, hedge funds are complicated investments with specific investor regulations. You must be an accredited investor to consider these for your portfolio.
Some members of AQR Capital Management’s staff are registered representatives of AQR Investments, LLC, the firm’s affiliated broker-dealer. As a result, these employees may earn additional compensation for the sale of certain securities. This could result in a potential conflict of interest. Despite this, AQR Capital Management abides by fiduciary duty, legally binding it to act in your best interest at all times.
Becoming a Client of AQR Capital Management
To see what your options at AQR Capital Management are, fill out the contact form on the firm's website or call (203) 742-3600.
All information is accurate as of the writing of this article.
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