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AQR introduced a family of three core equity mutual funds that seek to provide more consistent returns by simultaneously diversifying across three investment styles: value, momentum and profitability.
They've also got two rather less-vanilla funds in registration this month. Long/short and managed futures. If a fund family wants to hold assets for the long term, they like have a the core covered (large, small, international, income, balanced) as well as a collection of niche or diversifying funds. This might be part of building AQR as a fund complex.
I'll share the early details on the funds in registration in the May issue.
I'm a fan of AQR. Their process. Their history. Their (relatively) low fees.
But I worry about them becoming an asset gatherer.
I am very heavy and very happy with AQRIX.
But after it closed, they opened similar QRHIX and QRMIX.
I wish I could own closed ADAIX.
I worry that Affiliated Managers Group owes a piece of them.
From AQR's website:
Over $79.5 billion in assets under management for institutional investors, including pensions, insurance companies, endowments, foundations and sovereign wealth funds, as well as registered investment advisors.
Reply to @Charles: Curious why ADAIX - it's a good fund and probably the best in its category, but there are others (Arbitrage Event-Driven) that are relatively similar - none of these funds are going to hit more than singles, but their appeal is that they will likely hit a single even in a bad year. The tiny Quaker Event Driven (formerly Penn Ave Event-Driven) is another option.
I like AQR as well, although I remain more interested in their alternative strategies than their stock funds. We'll see how the new core funds do.
AQRIX is moderately different from the second version (Risk Parity II MV/HV) of the Risk Parity funds. AQR continues to appear to want to give advisors (as it would seem that's who their funds are really marketed towards) various choices - as David notes above, there is another Managed Futures fund coming from AQR, this version is HV.
I continue to believe that managed futures as a strategy doesn't work very well in the mutual fund format, but oh well.
Reply to @Charles: They are likely getting 2 and 20 on a pretty sizable amount of their overall AUM - the mutual fund part is growing, but I would think they have a larger asset base in their hedge funds.
Reply to @scott: Ha! It would indeed need to be arbitrage to get me to pay anyone 2/20. Hard to believe folks do...
I see ADAIX as a best-in-class offering. Diversified across mergers, convertibles, and other opportunity driven events. Low beta, good alternative to cash (for me) or short-term bonds, like RPHYX and PAIUX. Not sure I would own a lot of it, but starting to think that when a best-in-class fund becomes available, I'd like to own at least a small piece to keep opportunity available.
SEQUX, for example, is another one I wish I had bought when it re-opened in 2008. Ditto with RYSEX, MFLDX.
I'm conflicted here cause ultimately I believe 3-4 funds is all you really need.
So how about this?
While I will continue to pursue this "fewest funds" construct for the principal portion of my portfolio, I will indulge in opportunities to get exposure to other extraordinary money managers for a small but insightful and important role.
Comments
They've also got two rather less-vanilla funds in registration this month. Long/short and managed futures. If a fund family wants to hold assets for the long term, they like have a the core covered (large, small, international, income, balanced) as well as a collection of niche or diversifying funds. This might be part of building AQR as a fund complex.
I'll share the early details on the funds in registration in the May issue.
David
But I worry about them becoming an asset gatherer.
I am very heavy and very happy with AQRIX.
But after it closed, they opened similar QRHIX and QRMIX.
I wish I could own closed ADAIX.
I worry that Affiliated Managers Group owes a piece of them.
From AQR's website:
I like AQR as well, although I remain more interested in their alternative strategies than their stock funds. We'll see how the new core funds do.
AQRIX is moderately different from the second version (Risk Parity II MV/HV) of the Risk Parity funds. AQR continues to appear to want to give advisors (as it would seem that's who their funds are really marketed towards) various choices - as David notes above, there is another Managed Futures fund coming from AQR, this version is HV.
I continue to believe that managed futures as a strategy doesn't work very well in the mutual fund format, but oh well.
I see ADAIX as a best-in-class offering. Diversified across mergers, convertibles, and other opportunity driven events. Low beta, good alternative to cash (for me) or short-term bonds, like RPHYX and PAIUX. Not sure I would own a lot of it, but starting to think that when a best-in-class fund becomes available, I'd like to own at least a small piece to keep opportunity available.
SEQUX, for example, is another one I wish I had bought when it re-opened in 2008. Ditto with RYSEX, MFLDX.
I'm conflicted here cause ultimately I believe 3-4 funds is all you really need.
So how about this?
While I will continue to pursue this "fewest funds" construct for the principal portion of my portfolio, I will indulge in opportunities to get exposure to other extraordinary money managers for a small but insightful and important role