AQR Funds reopens several funds to new investors

TheShadow

https://www.sec.gov/Archives/edgar/data/1444822/000119312519075970/d668829d497.htm

497 1 d668829d497.htm AQR FUNDS SUPPLEMENT


AQR FUNDS

Supplement dated March 15, 2019 (“Supplement”)

to the Class I Shares and Class N Shares Prospectus

and the Class R6 Shares Prospectus,

each dated May 1, 2018, as amended (the “Prospectuses”),

of the AQR Diversified Arbitrage Fund, AQR Equity Market Neutral Fund,

AQR Long-Short Equity Fund and AQR Multi-Strategy Alternative Fund

(the “Funds”)


This Supplement updates certain information contained in the Prospectuses. Please review this important information carefully. You may obtain copies of the Funds’ Prospectuses and Statement of Additional Information free of charge, upon request, by calling (866) 290-2688, or by writing to AQR Funds, P.O. Box 2248, Denver, CO 80201-2248.

Effective immediately, the AQR Diversified Arbitrage Fund, AQR Equity Market Neutral Fund, AQR Long-Short Equity Fund and AQR Multi-Strategy Alternative Fund are no longer closed to new investors. Accordingly, all references in the Funds’ Prospectuses to the AQR Diversified Arbitrage Fund, AQR Equity Market Neutral Fund, AQR Long-Short Equity Fund and AQR Multi-Strategy Alternative Fund being closed to new investors are hereby deleted in their entirety from the Prospectuses.

Please refer to the section entitled “Investing With the AQR Funds” beginning on page 171 of each Prospectus for a description of investors eligible to invest in the AQR Diversified Arbitrage Fund, AQR Equity Market Neutral Fund, AQR Long-Short Equity Fund and AQR Multi-Strategy Alternative Fund.

PLEASE RETAIN THIS SUPPLEMENT FOR YOUR FUTURE REFERENCE

JoJo26

"Oh no, our performance has sucked so let's open our funds back up so we can earn more management fees."

rforno

You beat me to it.....

JoJo26 said:

"Oh no, our performance has sucked so let's open our funds back up so we can earn more management fees."

Old_Joe

I must be slowing down... both of you beat me to this one.

VintageFreak

Always Question the Ramifications

carew388

Awful Questionable Returns

MikeM

Can't argue the comments here, but I'll point out, a few years ago here at MFO, AQR was one of those "group think" management themes. Alternative funds that will perform in all economic markets. Obviously, no such thing.

MikeM2

I have been trying to dump my AQR funds. LS and Style Premia did the opposite of what was expected, they lost more than the market during the mini-bear. I just can't decide to do what to do with my 5-6% position of the above funds.

Ted

@MikeM2: I wouldn't invest in Alternative Funds with you money. Sell the fund and put the money 50/50 SPY and QQQ. However, If its another Alternative Fund, look here.
Regards,
Ted
http://mutualfunds.com/themes/alternative-funds/#complete-list&sort_name=net_assets&sort_order=desc&page=1

Old_Joe

I agree with @Ted on this one. Keep it simple, go with the market: 50/50 SPY and QQQ. The fancy stuff may work for a while due to some particular combination of market circumstances, but in the long haul there's just no consistent magical way to beat the averages.

Old_Skeet

Just a thought. My thinking is that if you want to take some risk out of your portfolio just hold more cash. In my money market mutual funds I am getting better than a 2% yield. Below is a link for a list of the top yielding money market funds. Currently, the money market funds that I own (with their 7 day yield) are AMAXX (2.14%), GBAXX (2.37%), DTGXX (2.23%) and PCOXX (2.46%). In comparison, my two cd's are paying 2.65% and 2.85%.

http://barrons.wsj.net/public/page/9_0204-trmfy.html

Old_Joe

@Old_Skeet- Yes, exactly what I've done, but to a much greater degree than would be appropriate for younger folks. At 80, we've accumulated enough to coast for the distance without the need for much risk.

But if the market does a major drop in the next year or so (and it very well may not) you can bet that I'll be buying, hopefully somewhat near the bottom.

Mark

My brokerage sweep account pays 2.05%. Why would anyone need 4 different MM funds?

Old_Skeet

@Mark: In response to your question: Why so many? Being retired these are not small sums being held. I have an investment policy that limits how much I'll invest in anyone fund. Also, if there is a rush to cash out some money market funds could hold up disbursement request especially PCOXX. In addition, each MMK fund that I hold is equivalent to one step in my CD ladder. I had a recent cd mature and when I could not get what I felt was a decent return I rolled the money into a mmk position for short term parking. Plus, this spreads my money over a number of positions and reduces manager, strategy and fund risk. Generally, I have a three to four step cd ladder. Presently, it now consist of only two steps. So, when I add another step to my cd ladder I'll close one of the money market positions. And, so on and so forth.

Plus, as Old_Joe states below there are multiple accounts that I'm dealing with.

Old_Joe

@Mark- Perhaps because Old_Skeet may have a number of different brokerage and Fund-Family accounts, each of which may have it's own MM fund. Much easier to transfer funds internally than to route money between different institutions.

In our case we have at least five MM funds- three at American Funds (one each for our two IRA accounts, and one for taxable... all are AFAXX), one at American Century (CPFXX), and one at Schwab (SWKXX).

MikeM

Agree on holding MM and/or CDs to reduce risk. I hold 2 myself in 2 different accounts, SWVXX at Schwab and VUSXX in a smaller TRP 401k I'm hanging onto. Both MM's make 2.3+.

The reduced risk for me especially plays out after I retire. The cash is the draw-down bucket where I won't have to pull living expenses out in a bear market, giving time for the equity side to recover. That is risk prevention for me.

MikeM2

Good stuff. Mentioning QQQ jogged my memory that I am underweight Tech. Thanks.