AQR Capital Management Launches ‘Core Equity’ Mutual Funds

Wed Mar 27, 2013 9:00am EDT

* Reuters is not responsible for the content in this press release.

GREENWICH, Conn.--(Business Wire)--
AQR Capital Management, LLC, ("AQR") announced today the introduction of 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. 

The AQR Core Equity Fund (Class L: QCELX) invests in equities of large- and
mid-capitalization U.S. companies. AQR Small Cap Core Equity Fund (Class L:
QSMLX) invests in equities of small market-capitalization U.S. companies. AQR
International Core Equity Fund (Class L: QICLX) invests in large
market-capitalization companies in major developed regions outside the U.S. 

The three funds begin operation on March 27, 2013, and will be distributed
through financial advisors only. 

"Empirical research supported by economic intuition has demonstrated that
security selection based on valuation, momentum and profitability has provided
attractive risk/reward tradeoffs. Each style seeks to capture a different source
of expected returns," said David G. Kabiller, CFA, Founding Principal and Head
of Client Strategies at AQR. "While each of these styles has performed well on
its own, their performance has a low correlation to one another and to the broad
market. By combining them in one portfolio, we may be able to give investors
more consistent returns in excess of our benchmarks." 

Both value and momentum have long histories of providing attractive returns,
have performed well across markets and across asset classes, and have persisted
for decades after their discoveries. Importantly, the two strategies have
performed even better when combined. More recent research has emerged that, on
average, stocks of profitable, stable and growing companies tend to
significantly outperform the market. 

Research suggests that strategies combining value, momentum and profitability
signals generate steadier returns compared with benchmarks than do strategies
that trade on just one or two of those attributes. 

AQR launched its first mutual fund on January 9, 2009. The AQR Funds have grown
to approximately $9.2 billion as of December 31, 2012, reflecting its expertise
in the development of long-only equity and diversifying alternative investment
strategies. AQR`s total assets under management were approximately $70.7 billion
as of December 31, 2012. 

About AQR

AQR Capital Management, a global investment-management firm and a leader in
alternative investing, applies a disciplined and analytical research process to
macroeconomic and fundamental data. AQR`s diversified offerings range from
traditional benchmark-oriented long-only strategies to absolute-return
alternatives. AQR manages assets worldwide for institutional investors,
including pensions, insurance companies, endowments, foundations and sovereign
wealth funds, as well as registered investment advisors. Founded in 1998, AQR is
based in Greenwich, Connecticut, with offices in Chicago, London and Sydney. 


The fund incorporates multiple measures to build each style, including
book-to-price for valuation, gross profits over assets for profitability, and
price performance over the past 12 months excluding the most recent month for


This Fund is not suitable for all investors. An investor considering the Funds
should be able to tolerate potentially wide price fluctuations. The Fund may
attempt to increase its income or total return through the use of securities
lending, and may be subject to the possibility of additional loss as a result of
this investment technique. The Fund is new and has a limited operating history. 

Diversification does not eliminate the risk of losses. 

Foreign investing involves special risks such as currency fluctuations and
political uncertainty. Funds that emphasize investments in smaller companies
generally will experience greater price volatility. Please refer to the
prospectus for complete information regarding all risks associated with the

Investors should carefully consider the investment objectives, risks, charges
and expenses of the Fund before investing. To obtain a prospectus containing
this and other important information, please call 1-866-290-2688 or visit to view or download a prospectus online. Read the prospectus
carefully before you invest.

As per the prospectus, the investment objective of the AQR Core Equity Fund, AQR
Small Cap Core Equity Fund and AQR International Core Equity Fund is long-term
capital appreciation. 

There are risks involved with investing including the possible loss of
principal. Past performance does not guarantee future results. AQR Funds are
distributed by ALPS Distributors Inc. Clifford Asness and David Kabiller are
registered representatives of ALPS Distributors Inc. CFA is a trademark owned by
the CFA Institute. [AQR002220, expiration date 3/26/2014.] © AQR Funds. All
rights reserved.

AQR Capital Management LLC
Marge Wyrwas, 203-742-3608

Copyright Business Wire 2013

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.