AQR Capital

AQR employs a research-based "systematic and consistent approach" to portfolio construction.{{Cite news |last=Bary |first=Andrew |date=27 February 2016 |title=How AQR's Liquid Alternative Funds Are Outperforming Competitors" Barron's |language=English |publisher=Barron's |agency=Dow Jones & Company Inc |location=United States |url=https://www.barrons.com/articles/how-aqrs-liquid-alternative-funds-are-outperforming-competitors-1456549367 |url-access=subscription |access-date=3 June 2016}} This disciplined approach of identifying long-term, repeatable sources of return means "having a high conviction in the process, but not a high conviction in any particular stock". The firm is a strong proponent of diversification within portfolios, as well as adding strategies with low correlation to traditional asset classes as a complement to existing portfolios.

AQR was an early adopter of style,{{Cite news |last=Bary |first=Andrew |date=31 August 2009 |title=Preaching the Gospel of Momentum |language=English |publisher=Barron's |agency=Dow Jones & Company Inc |issue=Interview |location=United States |url=https://www.barrons.com/articles/SB125149757049368027 |url-access=subscription |access-date=5 March 2019}} or factor, investing given the strategy's academic roots. Although the four styles — value, momentum, defensive and carry{{Cite news |last=Wigglesworth |first=Robin |date=5 April 2018 |title=AQR Capital launches first quantitative bond mutual fund |language=English |publisher=Financial Times |agency=Nikkei |issue=Markets |location=New York, N.Y., United States |url=https://www.ft.com/content/a95c6df6-38eb-11e8-8b98-2f31af407cc8 |url-access=subscription |access-date=5 March 2019}} — have been well-known and used in quantitative investing for decades, AQR has long advocated for using these styles together, citing their diversifying qualities.

AQR is perhaps best known for its alternative investment strategies, which aim to offer low correlation to traditional, equity-dominated portfolios. AQR was one of the first investment managers to offer a risk parity strategy, which aims to balance allocations based on underlying risk rather than asset classes. The firm also offers managed futures, a trend-following strategy that is “uncorrelated with other asset classes” and supported by over a century of academic evidence.

AQR was one of the first investment management firms to offer alternative mutual funds, launching its family of mutual funds in 2009.{{Cite news |last=Stein |first=Charles |date=14 January 2016 |title=Cliff Asness's Alternative Funds Top Rivals With 17% Returns |language=English |publisher=Bloomberg News |agency=Bloomberg L.P. |issue=Economics |url=https://www.bloomberg.com/news/articles/2016-01-14/cliff-asness-s-alternative-funds-top-rivals-with-17-returns |url-access=limited |access-date=3 June 2016}} The firm's liquid alternative strategies were a “category leader” in Morningstar’s ranking for 2015.{{Cite web |title=Morningstar (January 7, 2016) "The Year in Alternative Funds" Morningstar.com |url=http://investors.morningstar.com/news/news-content.html?t=NFLX¤tPage=1&resourceId=735321&nav=no®ion=USA&culture=en-US&ProductCode=mle&src=Morningstar&date=01-07-2016 |access-date=2016-06-03}}

Three of AQR's founding principals — Cliff Asness, Robert Krail and John Liew — met in the University of Chicago’s PhD program, where the foundation of the firm's investment philosophy took shape.{{Cite web |title=Who We Are – Our History |url=https://www.aqr.com/who-we-are/our-history |url-status=dead |archive-url=https://web.archive.org/web/20160715163607/https://www.aqr.com/who-we-are/our-history |archive-date=2016-07-15 |access-date=2016-06-03}}

While still working on his dissertation, which focused on momentum and value, Asness joined Goldman Sachs, where he was asked to lead a new quantitative research team within the firm's asset management division.{{Cite web |title=Lindsey, Richard & Schachter, Barry (2007) "How I Became a Quant" John Wiley & Sons, Inc. |url=http://www.newsmth.net/bbsanc.php?path=%2Fgroups%2Fsci.faq%2FFE%2Ffe%2FM.1223963980.E0&ap=454 |access-date=2016-06-03}} Liew and Krail joined him, and the new team applied what they learned in academia to manage both hedge-fund and long-only assets.

In 1998, Asness, David Kabiller, Krail and Liew left Goldman Sachs to establish AQR.

AQR was among the first hedge fund managers to voluntarily register at its inception with the Securities and Exchange Commission. The firm's first product was a hedge fund, though it soon (2000) entered into traditional portfolio management. In 2001, AQR had nearly $750 million assets under management.{{Cite news |last=Brown |first=Ken |date=22 February 2001 |title=Hedge Funds Start to Lose Their Fast-Growing Mystique |language=English |work=The Wall Street Journal. Eastern Edition |publisher=Wall Street Journal |agency=Dow Jones & Company Inc |location=United States |url=https://www.wsj.com/articles/SB98279336785826425 |url-access=subscription |access-date=2 March 2019 |issn=0099-9660}} In 2004, AQR had $12 billion assets under management. The firm opened its first international office in Australia in 2005.{{Cite web |title=Our Firm |url=https://www.aqr.com/About-Us/OurFirm |access-date=2019-03-11 |website=www.aqr.com |language=en}}

In 2009, AQR became one of the first investment managers to offer alternative mutual funds. In 2011, the firm opened an office in the UK.

After AQR's annual profit plunged 34% in 2018, the firm announced job cuts in January 2019.{{Cite news |last=Stratton |first=Alexandra |date=2 April 2019 |title=AQR Annual Profit Plunges 34% in Rough Environment for Quants |publisher=Bloomberg |location=New York |url=https://www.bloomberg.com/news/articles/2019-04-02/aqr-annual-profit-plunges-34-in-rough-environment-for-quants |url-access=subscription |access-date=3 October 2019}}{{Cite news |last=Wigglesworth |first=Robin |date=8 January 2019 |title=AQR announces job cuts after disappointing 2018 |language=English |publisher=Financial Times |agency=Nikkei |location=New York, N.Y., United States |url=https://www.ft.com/content/573abb42-139a-11e9-a581-4ff78404524e |url-access=subscription |access-date=26 March 2019}}

As of Q3 2019, the firm had $185 billion in assets under management.

As of 2016, approximately half of the AQR's employees have earned advanced degrees, with 52 holding PhDs.{{Cite web |title="Who We Are – Academic Engagement" AQR |url=https://www.aqr.com/who-we-are/academic-engagement |url-status=dead |archive-url=https://web.archive.org/web/20160715135425/https://www.aqr.com/who-we-are/academic-engagement |archive-date=2016-07-15 |access-date=2016-06-03}}

In 2015, AQR established QUANTA Academy, the firm's learning and development program, which is focused on three core pillars: Technical Skills and Knowledge, Leadership and Management, and Personal Enrichment. With a focus on lifelong learning, the program is designed to help employees reach their full potential through hundreds of courses annually.AQR.com

AQR's Insight Award (see below), which “recognizes the most significant and innovative academic research that offers practical applications for investors,” awarded its fifth annual slate of winners in 2016.{{Cite news |last=Burr |first=Barry |date=13 May 2016 |title=AQR honors 2 groups of academics for annual Insight Award |language=English |publisher=Pensions & Investments |agency=Crain Communications Inc |url=https://www.pionline.com/article/20160513/ONLINE/160519939/aqr-honors-2-groups-of-academics-for-annual-insight-award |url-access=subscription |access-date=3 June 2016}}

In 2014, AQR partnered with the London Business School to establish The AQR Asset Management Institute, which focuses on asset management research and thought leadership. The Institute rewards scholars in the field with annual grants and prizes.{{Cite web |title="AQR Asset Management Institute" London Business School |url=https://www.london.edu/faculty-and-research/research-centres/aqr-institute-of-asset-management#.V1CRBZMrLfa |access-date=2016-06-03}} AQR donated more than $15 million to be spread out over ten years.{{Cite news |last=Mackintosh |first=James |date=4 January 2015 |title=AQR gives London Business School £10m to build 'Davos of finance' |language=English |publisher=Financial Times |agency=Nikkei |issue=Business school |url=https://www.ft.com/content/d7c62a74-928b-11e4-b213-00144feabdc0 |url-access=subscription |access-date=12 February 2019}}

The firm is also a sponsor of the AQR Top Finance Graduate Award at Copenhagen Business School, which honors the PhD graduates whose research carries the greatest potential impact.{{Cite web |title="AQR Top Finance Graduate Award at CBS" Copenhagen Business School |url=http://www.tilmeld.dk/financegradaward2016 |access-date=2016-06-03}}

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• [http://www.aqr.com Official website]

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Category:Hedge fund firms in Connecticut

Category:Financial services companies established in 1998

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Category:Hedge fund firms of the United States

Category:Investment management companies of the United States