AQR Capital Management Launches ‘Core Equity’ Mutual Funds

GREENWICH, Conn.--()--AQR Capital Management, LLC, (“AQR”) announced today the introduction of a family of three “core equity” mutual funds that seek to provide more consistent returns by simultaneously diversifying across three investment styles: value, momentum and profitability.

The AQR Core Equity Fund (Class L: QCELX) invests in equities of large- and mid-capitalization U.S. companies. AQR Small Cap Core Equity Fund (Class L: QSMLX) invests in equities of small market-capitalization U.S. companies. AQR International Core Equity Fund (Class L: QICLX) invests in large market-capitalization companies in major developed regions outside the U.S.

The three funds begin operation on March 27, 2013, and will be distributed through financial advisors only.

“Empirical research supported by economic intuition has demonstrated that security selection based on valuation, momentum and profitability has provided attractive risk/reward tradeoffs. Each style seeks to capture a different source of expected returns,” said David G. Kabiller, CFA, Founding Principal and Head of Client Strategies at AQR. “While each of these styles has performed well on its own, their performance has a low correlation to one another and to the broad market. By combining them in one portfolio, we may be able to give investors more consistent returns in excess of our benchmarks.”

Both value and momentum have long histories of providing attractive returns, have performed well across markets and across asset classes, and have persisted for decades after their discoveries. Importantly, the two strategies have performed even better when combined. More recent research has emerged that, on average, stocks of profitable, stable and growing companies tend to significantly outperform the market.

Research suggests that strategies combining value, momentum and profitability signals generate steadier returns compared with benchmarks than do strategies that trade on just one or two of those attributes.

AQR launched its first mutual fund on January 9, 2009. The AQR Funds have grown to approximately $9.2 billion as of December 31, 2012, reflecting its expertise in the development of long-only equity and diversifying alternative investment strategies. AQR’s total assets under management were approximately $70.7 billion as of December 31, 2012.

About AQR

AQR Capital Management, a global investment-management firm and a leader in alternative investing, applies a disciplined and analytical research process to macroeconomic and fundamental data. AQR’s diversified offerings range from traditional benchmark-oriented long-only strategies to absolute-return alternatives. AQR manages assets worldwide for institutional investors, including pensions, insurance companies, endowments, foundations and sovereign wealth funds, as well as registered investment advisors. Founded in 1998, AQR is based in Greenwich, Connecticut, with offices in Chicago, London and Sydney.


The fund incorporates multiple measures to build each style, including book-to-price for valuation, gross profits over assets for profitability, and price performance over the past 12 months excluding the most recent month for momentum.


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.

Diversification does not eliminate the risk of losses.

Foreign investing involves special risks such as currency fluctuations and political uncertainty. Funds that emphasize investments in smaller companies generally will experience greater price volatility. Please refer to the prospectus for complete information regarding all risks associated with the Funds.

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 to view or download a prospectus online. Read the prospectus carefully before you invest.

As per the prospectus, the investment objective of the AQR Core Equity Fund, AQR Small Cap Core Equity Fund and AQR International Core Equity Fund is long-term capital appreciation.

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. [AQR002220, expiration date 3/26/2014.] © AQR Funds. All rights reserved.


AQR Capital Management LLC
Marge Wyrwas, 203-742-3608


AQR Capital Management LLC
Marge Wyrwas, 203-742-3608