AQR Denies Shelving IPO

Nov 12 2007 | 2:45pm ET

One week after it reportedly shelved plans for an initial public offering because of losses stemming from poor performance, AQR Capital Management is doing some serious damage control through its public relations firm.

Brian Maddox, a spokesman for the firm, vehemently denies a New York Post report that the firm withdrew its plans for an IPO due to investors withdrawing their capital in light of poor performance.

“AQR did not ‘shelve’ the IPO process - it hadn't even filed a registration statement with the SEC,” Maddox told FINalternatives.

According to Maddox, AQR has also not experienced large redemptions from investors. Rather, he says the firm’s assets under management have risen from $29 billion at the beginning of the year to their current level of $38.5 billion. As well, Maddox says the firm is “doing reasonably well in a volatile market” with some of its hedge funds up in the double digits, while a few are down but only in the single digits – “though one hedge fund, which represents less than 1% of our AUM, is for the moment down in the double digits.” He declined to disclose the specific hedge fund.

For now, Maddox said market turmoil does not favor the IPO of any firm in AQR's industry, although he declined to further comment on the firm’s future IPO plans. However, Reuters reports today that, “AQR is leaving open the possibility that it may revive IPO plans in coming months, according to people familiar with its plans."

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