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

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...