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From David's October Commentary- "AQR Risk Parity (AQRNX) will close to new investors on November 16. If you’ve got somewhere between $1 million and $5 million sitting around, unallocated, in your risk-parity investment pot, you might consider this high-minimum fund."
I guess that if you want in, better get in now. Will be looking at this at Schwab this week.
Note- IRA at Schwab is only $1000 / Non-Ira $2500 as Ben notes above.
Reply to @TheShadow: They're still able to. The AQR funds have been $1M for quite a while, but different brokers are all over the place in terms of minimums.
The funds started off as part of the whole "hedge funds for retail" push, and oddly, it wasn't that long after (6 mo) that the approach was "re-thought", the minimum changed and the funds geared towards institutional/financial planners/etc.
Reply to @scott: True, but I bought into some of the AQR funds when the initial minimums were below $1M or $5M instituted by the firm a couple of years ago. Also, I have notice that it is easier to buy into some new funds at financial intermediaries when they are new and have small amount of AUM rather than wait until they get more AUM. Incidentally, I bought the "I" shares of the Parity fund thru Fido in my non-taxable account when the fund first came out.
Is there any reason to expect AQRIX to do better in the future than ABRIX, which so far behaves better (essentially a straight line up since 2009)? Or maybe AQRX is going to be more tax-efficient than ABRIX? Or the interest in AQRX appears because of expectations related to Asness? But he is not the manager of AQRIX.
I follow 4 RP funds -- AQRIX, ABRIX, MMAFX, and PDRYX -- and own 4% positions in the first two which have clearly outperformed the last two. Truthfully, I couldn't decide between AQRIX and ABRIX, so I bought equal amounts of both.
Since the inception of AQRIX (9/30/10), ABRIX has had a lower standard deviation (7.0 vs. 8.9), higher sharpe ratio (1.45 vs. 0.91), and higher total returns (25.6% vs. 23%) than AQRIX according to EzBacktest. One major disadvantage going forward is that ABRIX's AUM have ballooned to $9.4B compared to the more manageable $916M AUM for AQRIX. Also, these two funds approach RP investing differently as they have a 2-year correlation of only 0.73 per assetcorrelation.com.
Other than the more nimble AUM of AQRIX, I have no reason to believe that AQRIX will outperform ABRIX going forward, so I have decided to own equal positions in both.
I did try to place an order at Schwab for test purposes and I was rejected with this message: "We cannot process your order for this fund. Please contact a Schwab representative for assistance." No problem at TDA where I do own some. Sorry to lead members astray.
I haved placed orders, of late for ASFYX for over $2,500 with Fido only to find it cancelled by mid-morning after the day I placed the trade. Some of the keys are whether the trade is completed and will the on-line system accept an offer, for even less than the stated minimum.
I placed the order then cancelled it. I did not get the $1million min message. I am mulling over a position. I will report back to the board here if I buy it in the next day or 2.
There's a new risk parity player you guys might find interesting, www.hedgewise.com. They do individual managed accounts as small as $10k and let you choose your own risk level. Could help fill the gap in the market for smaller accounts.
Comments
I guess that if you want in, better get in now. Will be looking at this at Schwab this week.
Note- IRA at Schwab is only $1000 / Non-Ira $2500 as Ben notes above.
Harruummpphhhhh.AQR funds are available for $100 at Scottrade in ANY kind of account. Why isn't anyone listening?
The funds started off as part of the whole "hedge funds for retail" push, and oddly, it wasn't that long after (6 mo) that the approach was "re-thought", the minimum changed and the funds geared towards institutional/financial planners/etc.
I follow 4 RP funds -- AQRIX, ABRIX, MMAFX, and PDRYX -- and own 4% positions in the first two which have clearly outperformed the last two. Truthfully, I couldn't decide between AQRIX and ABRIX, so I bought equal amounts of both.
Since the inception of AQRIX (9/30/10), ABRIX has had a lower standard deviation (7.0 vs. 8.9), higher sharpe ratio (1.45 vs. 0.91), and higher total returns (25.6% vs. 23%) than AQRIX according to EzBacktest. One major disadvantage going forward is that ABRIX's AUM have ballooned to $9.4B compared to the more manageable $916M AUM for AQRIX. Also, these two funds approach RP investing differently as they have a 2-year correlation of only 0.73 per assetcorrelation.com.
Other than the more nimble AUM of AQRIX, I have no reason to believe that AQRIX will outperform ABRIX going forward, so I have decided to own equal positions in both.
Kevin
"We cannot process your order for this fund. Please contact a Schwab representative for assistance." No problem at TDA where I do own some. Sorry to lead members astray.
I haved placed orders, of late for ASFYX for over $2,500 with Fido only to find it cancelled by mid-morning after the day I placed the trade. Some of the keys are whether the trade is completed and will the on-line system accept an offer, for even less than the stated minimum.