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Do any of the AQR funds outperform over a long time frame, say; against healthcare funds or long term Treasury issue funds? Appears that many of the AQR funds are more suited to a down or bear market function.
I smile at this notation regarding AQMIX: Fund Overview Objective:
The investment seeks positive absolute returns.
No s&#t, our house; too !!!
What the heck; let us take a look at total return: AQMIX v FSPHX v EDV Jan. 2010 to date.
Appears that many of the AQR funds are more suited to a down or bear market function. Take care, Catch
@Catch, or a flat market, or just generally going for the worthy objective of good risk-adjusted return. I've held the long-short and market-neutral equity funds (QLENX and QMNNX, both closed to new investors now) at some level for ~ 2.5y, and for the most part, they've worked on a risk-adjusted return basis. But, I can never predict with any certainty what they're doing and why any given day, week, or month.
Look at those two in calendar 2015 for the best example of what they can do for the portfolio.
Re: AQMIX, I dunno if there's any managed futures strategy I'd ever try out again.
Cheers, AJ
P.S. Not sure about the funds that are still open, but the two I own had low initial minimums at Fido in retirement accounts.
Here's a comparison of fund family stats for AQR and Vanguard, keying on Mr. Rekenthaler's recent article ... AQR has fared pretty well since inception, especially given most of its funds are non-index (click image to enlarge, ASC means All Share Classes, OSC means Oldest Share Class):
@catch22 , I agree with you. Not my cup of tea either. I don't see how these funds can do anything but stunt the growth of an already well diversified portfolio. But on the other hand, building a portfolio is a personal thing and if they bring more risk-level comfort to some, then that's the AQR buyers market.
Glancing over AQR's 38 funds, I'll add that their out-performance tends to be more in Alternative and Mixed Asset categories rather than International and US Equity. So far anyway.
I'll stay with the 3 funds listed previous for a 3 time periods view. We don't have any money directed to this area (AQR offerings); but an interesting study, none the less.
--- Jan. 2010 - Jan. 2012. Brief background. Euro/Japan still attempting to define and refine monetary adjustments after the market melt. Many whipsaws in Euro markets (you didn't forget Greece did you?). The BIG one (albeit short lived reactions) was the downgrade by S&P of the debt quality of the U.S. in July, 2011. The equity sector(s) hit in July, 2011can be observed here, too; represented by FSPHX.
Not an alternative fund, but I've been happy with performance of AUENX in my retirement accounts compared to FDFAX or RYCIX. Unfortunately still has 1 million minimum for taxable accounts.
@catch22 , I agree with you. Not my cup of tea either. I don't see how these funds can do anything but stunt the growth of an already well diversified portfolio. But on the other hand, building a portfolio is a personal thing and if they bring more risk-level comfort to some, then that's the AQR buyers market.
As I wrote above, Mike, you might want to check QL and QM in the near-zero return year of 2015 if you think comfort is all those funds can do:
Since inception in mid-2013: $10k = $18,815 QLENX, $16,764 VFIAX, with QLENX holding on average about 50-60% long exposure to the equity market.
None of this of course means that all of their funds will do well; my point is that dismissing them only on the basis of what people think they are and do is potentially a mistake.
Yeah, I noticed that, as I was charting them ($10k growth) vs DSENX, which tripled SP500 that year --- but nothing like those two. For the next year (last year), it was a rather different story, with DSENX near to doubling SP500, QLENX close to equaling SP500 and QMNNX about only half. Wonder what happened in 2015. Wish I could put some money in them. Sure are not a lot of articles.
@AndyJ Can't disagree with those great returns, albeit a very short life span. Time will tell. But I can remember other tactical/LS funds that became darlings on this board for a brief moment, like that Catalyst Hedging fund, Whitebox, Marketfield, the PIMCO all-asset funds, something called Gargoyle from a small company called RiverPark(?) if memory serves. I'm under the firm belief that funds like these are miracle workers until they're not. With my luck I'd buy right into the "they're not" cycle.
I hope these funds serve you well over the long haul, and I'm positive with these 2-3 year returns they will pull in tons of money if they haven't already. They could very well be a great option for covering down markets, but at my age I have to stick with what I understand, the old fashion bond funds, equity funds and cash.
@MikeM, I hear you about the alt categories' shortcomings, but I also think 4+ years is more than a brief moment. They're both closed to new investors now, so aren't that plugged up with assets.
(As usual, I reserve the right to change my mind and sell at any time. Which I tend to do not all that infrequently.)
Cheers - AJ
P.S. @davidmoran, QM's neutral and QL is the same neutral strategy + up to 50% long as an addon. QM usually runs at sort of a bond-ish level of volatility (M* compares the up-down capture to the AGG), and it tends to pick up the slack when both stx and most bonds take a hit.
Comments
Appears that many of the AQR funds are more suited to a down or bear market function.
I smile at this notation regarding AQMIX:
Fund Overview Objective:
The investment seeks positive absolute returns.
No s&#t, our house; too !!!
What the heck; let us take a look at total return: AQMIX v FSPHX v EDV Jan. 2010 to date.
http://stockcharts.com/freecharts/perf.php?AQMIX,FSPHX,EDV&n=1978&O=011000
I'll call this one, take the money and run.
Take care,
Catch
Look at those two in calendar 2015 for the best example of what they can do for the portfolio.
Re: AQMIX, I dunno if there's any managed futures strategy I'd ever try out again.
Cheers, AJ
P.S. Not sure about the funds that are still open, but the two I own had low initial minimums at Fido in retirement accounts.
--- Jan. 2010 - Jan. 2012. Brief background. Euro/Japan still attempting to define and refine monetary adjustments after the market melt. Many whipsaws in Euro markets (you didn't forget Greece did you?). The BIG one (albeit short lived reactions) was the downgrade by S&P of the debt quality of the U.S. in July, 2011. The equity sector(s) hit in July, 2011can be observed here, too; represented by FSPHX.
http://stockcharts.com/freecharts/perf.php?AQMIX,FSPHX,EDV&l=0&r=505&O=011000
--- 2015, year. Bond farts in this year, particular late spring through the summer.
http://stockcharts.com/freecharts/perf.php?AQMIX,FSPHX,EDV&l=1254&r=1501&O=011000
--- 1 year chart to date
http://stockcharts.com/freecharts/perf.php?AQMIX,FSPHX,EDV&n=248&O=011000
At least with AQMIX, I do not find an advantage for their methods and a 1.8% E.R.
Okay, got to get to chores while the sun is still shining through.
Catch
VFIAX (S&P 500): +1.36
VBMFX (core FI): +0.30
VWEHX (hy FI): -1.40
QLENX +16.79
QMNNX +17.43
Since inception in mid-2013: $10k = $18,815 QLENX, $16,764 VFIAX, with QLENX holding on average about 50-60% long exposure to the equity market.
None of this of course means that all of their funds will do well; my point is that dismissing them only on the basis of what people think they are and do is potentially a mistake.
For the next year (last year), it was a rather different story, with DSENX near to doubling SP500, QLENX close to equaling SP500 and QMNNX about only half.
Wonder what happened in 2015.
Wish I could put some money in them. Sure are not a lot of articles.
I hope these funds serve you well over the long haul, and I'm positive with these 2-3 year returns they will pull in tons of money if they haven't already. They could very well be a great option for covering down markets, but at my age I have to stick with what I understand, the old fashion bond funds, equity funds and cash.
(As usual, I reserve the right to change my mind and sell at any time. Which I tend to do not all that infrequently.)
Cheers - AJ
P.S. @davidmoran, QM's neutral and QL is the same neutral strategy + up to 50% long as an addon. QM usually runs at sort of a bond-ish level of volatility (M* compares the up-down capture to the AGG), and it tends to pick up the slack when both stx and most bonds take a hit.
still unavail