AQR Capital Management Launches Multi-Strategy Alternative Mutual Fund Provides Exposure to Multiple Alternative Investment Strategies in a Single Fund
GREENWICH, Conn., July 18, 2011 /PRNewswire/ -- AQR Capital Management, LLC, ("AQR") announced today the launch of AQR Multi-Strategy Alternative Fund (ASANX/ASAIX), the newest addition to its mutual fund family.
The new no-load mutual fund began operations on July 18, 2011 with a $20 million investment by AQR. The Fund's investment objective is to seek long-term positive absolute return through a broadly diversified portfolio of alternative strategies that are traditionally made available through hedge funds.
The Multi-Strategy Alternative Fund targets low correlation to traditional asset classes and seeks to provide exposure to nine different types of alternative strategies: Convertible Arbitrage, Event Driven (including Merger Arbitrage), Fixed Income Relative Value, Equity Market Neutral, Long/Short Equity, Dedicated Short Bias, Global Macro, Managed Futures and Emerging Markets.
"By providing investors with access to nine different alternative investment strategies," said David G. Kabiller, CFA, Founding Principal and Head of Client Strategies at AQR, "the AQR Multi-Strategy Alternative Fund attempts to provide a comprehensive solution to their alternative investment needs. In addition, by targeting low correlation to traditional asset classes, the Fund has the added benefit of potentially increasing investors' portfolio diversification."
"As of today, there are only a relatively small number of mutual funds that pursue a similar multi-strategy approach. With AQR's extensive experience in managing multi-strategy portfolios for institutional clients, we believe that AQR is perfectly poised to respond to a growing market need among mutual fund investors. The launch of the Multi-Strategy Alternative Fund reinforces AQR's commitment to introducing innovative mutual funds that may help individual investors to build more efficient and diversified portfolios."
Distributed through financial advisors only, the Multi-Strategy Alternative Fund is the ninth mutual fund launched by AQR. Since the launch of the first fund in January of 2009, the AQR Funds have grown to over $4.7 B as of June 30, 2011.
About AQR Capital
AQR Capital Management, LLC is an investment management firm located in Greenwich, CT. The firm's founding principals, Clifford S. Asness, Ph.D., David G. Kabiller, CFA, Robert J. Krail, and John M. Liew, Ph.D., along with several colleagues, founded AQR in 1998. Each of the firm's principals was formerly at Goldman Sachs, & Co., where Asness, Krail, and Liew comprised the senior management of the Quantitative Research Group at Goldman Sachs Asset Management.
AQR manages approximately $41 billion in assets as of 6/30/2011, primarily for institutional investors such as pensions and endowments. The firm offers a broad range of products that include aggressive high volatility market-neutral hedge funds, as well as low volatility benchmark driven traditional products. AQR Funds were created to provide mutual fund investors with access to these alternative and innovative strategies.
AQR's mutual fund offering includes Diversified Arbitrage Fund (ADANX); Managed Futures Strategy Fund (AQMNX); Risk Parity Fund (AQRNX); Momentum Fund (AMOMX); Small Cap Momentum Fund (ASMOX); International Momentum Fund (AIMOX); International Equity Fund (AQINX); and Global Equity Fund (AQGNX).
The Fund does not invest directly in hedge funds, but pursues strategies similar to those traditionally employed by hedge funds. Emerging market and foreign investing involves special risks such as currency fluctuations, political uncertainty, differences in generally accepted accounting principles, increased volatility and lower trading volume. The use of derivatives, forward and futures contracts, and commodities exposes the Fund to additional risks including increased volatility, lack of liquidity, and possible losses greater than the Fund's initial investment as well as increased transaction costs. This Fund enters into a short sale by selling a security it has borrowed. If the market price of a security increases after the Fund borrows the security, the Fund will suffer a potentially unlimited loss when it replaces the borrowed security at the higher price. Short sales also involve transaction and other costs that will reduce potential Fund gains and increase potential Fund losses. When investing in bonds, yield and share price will vary with changes in interest rates and market conditions. Investors should note that if interest rates rise significantly from current levels, bond total returns will decline and may even turn negative in the short term. There is also a chance that some of the Fund's holdings may have their credit rating downgraded or may default. Actual or realized volatility can and will differ from the forecasted or target volatility described above.
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.
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 www.aqrfunds.com to view or download a prospectus online. Read the prospectus carefully before you invest.
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.[AQR806, expiration date 6/30/2012.] © AQR Funds. All rights reserved.
SOURCE AQR Capital Management, LLC