Friday, 1 July 2016
Last updated 17 hours ago
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.