AQR Launches Risk Parity Mutual Fund

Oct 5 2010 | 2:11pm ET

Quantitative hedge fund AQR Capital Management has launched its eighth mutual fund, employing a risk parity asset allocation strategy.

The Greenwich, Conn.-based firm said its AQR Risk Parity Fund debuted on Friday, seeded with $10 million. The new fund focuses on allocating risk rather than capital, offering investors reduced equity market exposure in an effort to reduce equity risk, tail risk and volatile downswings.

Risk Parity invests in over 70 liquid instruments across asset classes to maximize diversification. The fund's holdings include global equities, fixed-income, commodities, currencies and other credit products.

"We believe it provides more meaningful diversification and consistent returns over time than traditional approaches, a portfolio that is more robust in different economic environments, and an opportunity to improve the risk/return characteristics of an overall portfolio through enhanced returns and reduced risks," David Kabiller, head of client strategies, said.

In Depth

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel's Griffin Reaches Settlement in Contentious Divorce

Oct 8 2015 | 10:14pm ET

Billionaire hedge fund manager Ken Griffin and his wife have settled a long-running...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note