AQR has launched a new UCITS market-neutral and Article 8 fund, AQR Adaptive Equities. This is an equity market-neutral fund aiming to offer high returns without correlation to traditional markets.
The strategy employs the most sophisticated and comprehensive expression of AQR’s stock selection models to deliver alpha through a highly diversified portfolio (over 800 long and 800 short positions) in developed companies (both large and small-cap).
The strategy aims to deliver around a 6% return above the risk-free rate (in the long term and net of fees). In the current environment (with the cash dollar yielding 5%), the total return target would be around 11%.
The strategy has more than three years of track record (launched in February 2021) and, during this period, has delivered over 17% annualized net return. In terms of risk, it aims for a volatility target between 6%-10% and low correlation with the markets. Since its launch, it has offered an annualized volatility of 7.3% and a -0.3 correlation with the MSCI World.
The newly launched UCITS fund is available to retail and institutional investors through the usual channels. It will offer exposure to the original strategy with an ESG bias (in an Article 8 fund according to the SFDR) and daily liquidity (with two days’ notice for redemptions).
For Alicia Miguel
For Gabriela Huerta