AQR is a global investment management firm built at the intersection of financial theory and practical application. We strive to deliver superior, long-term results for our clients by seeking to filter out market noise to identify and isolate what matters most, and to develop ideas that stand up to rigorous testing. Our focus on practical insights and analysis has made us leaders in alternative and traditional strategies since 1998.
AQR takes a systematic, research-driven approach, applying quantitative tools to process fundamental information and manage risk. The firm has 42 principals and ~940 employees; nearly half of employees hold advanced degrees. We are based in Greenwich, Connecticut, with offices in Bengaluru, Boston, Chicago, Hong Kong, London, Los Angeles, Sydney, and Tokyo. As of December 31, 2019, AQR had approximately $186 billion in assets under management (managed by AQR and its advisory affiliates). Our clients include institutional investors, such as pension funds, defined contribution plans, insurance companies, endowments, foundations, family offices and sovereign wealth funds, as well as RIAs, private banks and financial advisors.
Investment decisions across all funds are made using a series of global asset allocation, arbitrage, and security selection models, and are implemented using proprietary trading and risk-management systems. Both the traditional benchmark and market-neutral strategies are managed by the same portfolio teams and driven by the same underlying research. The research of AQR's portfolio teams is internationally recognized and has resulted in numerous published papers in a variety of professional journals since the early 1990s.
AQR recognizes that ESG factors may have both direct and indirect impacts on corporate profitability, long-term portfolio performance and risk. We seek to understand the broader implications and challenges stemming from ESG issues for our clients, as well as the related impact on their portfolios, and we provide education and investment solutions to help our clients to meet those challenges. It is important to note that we view ESG similarly to other factors, and see best practice in ESG integration similarly to the way we view best practice in responsible investment management.
AQR has sought to offer its clients solutions to meet their ESG needs. Beyond client-directed exclusions or constraints, this work has included the development of AQR’s Sustainable investment strategies ($5 billion in assets under management at the end of 2019) and carbon-aware portfolios ($10 billion as of the same), and the refinement of our proxy and engagement programs.
AQR is also committed to managing its business activities in a manner which is consistent with sustainability. In this regard, AQR has a number of initiatives to help promote sustainability within its operations – ranging from offsetting 100% of our global carbon footprint internally to promoting an inclusive, diverse workplace – and with respect to its interactions with the community. This has included work performed by AQR’s philanthropic committee as well as AQR’s ESG in the Office Committee, originally designed by AQR employees with the aim of joining together to help create a more sustainable and responsible workplace and now a formal part of our ESG governance structure.