AQR Capital Management, LLC is an investment management and advisory firm that handles more than $270 billion in client assets under management (AUM). This is a large firm, employing 438 advisory employees throughout its 10 branches in the U.S., Asia, Europe and Australia. The firm is headquartered in Greenwich, Connecticut.
Services at AQR Capital Management include the management of both traditional and alternative investment strategies, proprietary investment analysis, model portfolio recommendations and more. The firm principally serves pooled investment vehicles, investment companies and other institutional clients. This is a fee-based firm.
AQR Capital Management Background
Established in 1998, AQR Capital Management has been in business for more than two decades. The firm was created by a trio of founding principals: Cliff Asness, David Kabiller and John Liew. AQR Capital Management is owned by AQR Capital Management Holdings, LLC, a financial services holding company. AQR Capital Management Holdings is, in turn, indirectly owned by Asness.
Across AQR’s team of principals, there are five chartered financial analysts (CFAs) and one certified public accountant (CPA). The firm’s website also states that 45% of its employees hold advanced degrees.
What Types of Clients Does AQR Capital Management Accept?
More than half of AQR Capital Management’s client base is comprised of pooled investment vehicles. The rest of the firm’s typical clientele includes investment companies, pension plans, government entities, sovereign wealth funds and foreign official institutions.
AQR Capital Management Minimum Account Size
AQR Capital Management uses a fluid account minimum that shifts depending on the services you subscribe to. More specifically, the minimum initial investment for AQR’s various investment strategies range from $50 million to $100 million. However, the firm reserves its right to waive these minimums at its own discretion.
Services Offered by AQR Capital Management
AQR Capital Management is an investment-focused firm that offers services including:
- Investment management and advice
- Recommendations customized to clients’ needs and goals
- Qualitative investment analysis
- Mutual fund advisory services
- Advisory services for sponsored funds and managed accounts
- Advisory/Sub-advisory services for Undertakings for Collective Investment in Transferable Securities (UCITS) funds
- Non-discretionary model portfolio recommendations
AQR Capital Management Investment Philosophy
AQR Capital Management has a thorough investing approach that begins with its own in-house investment analysis and research. In fact, the firm will identify and create a strategy, and then test it before applying it to clients’ portfolios. To ensure that each of its investment strategies remain viable, the firm regularly monitors and adjusts them as needed.
The many investment strategies that AQR Capital Management utilizes can be divided into two main categories: traditional strategies and alternative strategies. The traditional option is primarily focused on investing in some mixture of equities and fixed-income securities, namely bonds. On the other hand, alternative strategies can be focused on either alternative investments with no or some connection to the traditional market. The strategy you end up with will be chosen based on your desired returns, risk tolerance and more.
Fees Under AQR Capital Management
AQR Capital Management does not use an explicit fee schedule, as its services are far too variable to maintain a set of typical charges. Instead, the firm offers fee ranges depending on the type of service you require.
|Fees at AQR Capital Management|
|AQR Funds||0.25% - 1.80% annual fee|
|AQR UCITS||0.10% - 1.50% annual fee|
|Sponsored Funds||Up to 2.55% annual fee|
|Managed Accounts||Up to 1.70% annual fee|
|Model Portfolio Recommendations||Negotiable|
What to Watch Out For
Some members of AQR Capital Management’s staff are registered representatives of AQR Investments, LLC, the firm’s affiliated broker-dealer. As a result, these employees may earn additional compensation for the sale of certain securities. This could result in a potential conflict of interest. Despite this, AQR Capital Management abides by fiduciary duty, legally binding it to act in your best interest at all times.
AQR Capital Management has a wide range of services relating to investment management. However, it does not provide any sort of financial planning, so prospective clients will have to look elsewhere for these offerings.
According to AQR Capital Management’s SEC-filed Form ADV, the firm has six disclosures on its legal and regulatory record. These include events like violating futures contract position limits and delayed notifications of net short positions to the Swedish Financial Supervisory Authority (SFSA) and the Netherlands Authority for the Financial Markets (AFM). As a result of these distinctly separate events, AQR was fined various amounts.
Opening an Account With AQR Capital Management
If you’d like to get in touch with AQR Capital Management’s team, your best route would be to call whichever branch is closest to you. Here are the phone numbers for AQR’s various locations:
- Greenwich, CT: +1 (203) 742-3600
- Boston, MA: +1 (617) 895-2010
- Chicago, IL: +1 (773) 840-6620
- Los Angeles, CA: +1 (310) 651-5520
- London, United Kingdom: +44 20 3130 7800
- Frankfurt, Germany: +49 695 0608 9700
- Sydney, Australia: +61 2 8023 6500
- Tokyo, Japan: +81 3-4563-8200
- Hong Kong: +852 3708 5650
AQR’s website does not list a phone number for the firm’s branch in Bengaluru, India.
Where Is AQR Capital Management Located?
AQR Capital Management is headquartered in Greenwich, Connecticut at Two Greenwich Plaza on the third floor. However, the firm operates nine other branches around the globe, including in Boston, Chicago, Los Angeles, London, Sydney, Tokyo, Hong Kong, Frankfurt and Bengaluru.
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