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Just noticed recently that AQR Long-Short and Market Neutral, about which much was typed here several years ago while they were soaring at a time not much else was doing anything, are now negative since inception (per M* growth of $10k charts).
The other noteworthy AQR fund is Diversified Arbitrage (market neutral), ADANX, but the expense ratio keeps on rising; now at 2.32%. The rest of AQR funds are getting expensive to own. This fund, however, is leading two competitive funds in the same asset class:
While the AQR funds are having high expense ratio, their performance in 2020 have not been consistently good versus their peers. The founder of AQR funds, Cliff Asness, a former hedge fund manager, lets his politics spill over his business in recent years. Wish he stay focus on the AQR funds and brings them to be more competitive in the mutual fund universe. Performance-wise, as note by AndyJ above, they are not consistently good.
@Sven: good catch on ADANX. I'd thought all the AQRs must be in the tank.
The alt funds lesson I learned with AQR LS and MN, and earlier, Pimco Long-Short, is to buy when they're hot and be ready to get out when they stop, 'cause not very many are consistent. Hoping for the best with TMSRX, but it's very much tactical allocation, and it's so rare for any manager(s) to get those calls right consistently over time.
TMSRX has a drawdown -6.5% in March. Otherwise it has been quite good and managed to out-perform bond index. Let's hope it continue to do well in 2021.
If you don't mind the high ER, River Park Long/short fund is up over 50% this year with ER at 2%.
Comments
https://www.sec.gov/Archives/edgar/data/1444822/000119312520329459/d78353d497.htm
AQR Diversified Arbitrage, ADANX YTD 25.5%
Arbitrage, ARBFX, 5.4%
Merger, MERFX, 5.0%
While the AQR funds are having high expense ratio, their performance in 2020 have not been consistently good versus their peers. The founder of AQR funds, Cliff Asness, a former hedge fund manager, lets his politics spill over his business in recent years. Wish he stay focus on the AQR funds and brings them to be more competitive in the mutual fund universe. Performance-wise, as note by AndyJ above, they are not consistently good.
Think I will stick with T. Rowe Price funds.
The alt funds lesson I learned with AQR LS and MN, and earlier, Pimco Long-Short, is to buy when they're hot and be ready to get out when they stop, 'cause not very many are consistent. Hoping for the best with TMSRX, but it's very much tactical allocation, and it's so rare for any manager(s) to get those calls right consistently over time.
Cheers --
If you don't mind the high ER, River Park Long/short fund is up over 50% this year with ER at 2%.