Cliff Asness’ AQR Capital Management has not been fazed by the high number of hedge fund closures and redemptions seen in 2011. Asness has managed to grow his firm to over $42 billion in assets under management.
In fact, AQR Capital is quite bullish about the market in general, opening the new year with three new hedge funds. “The $41 billion quantitative specialists revealed the plan funds and securities and exchange commission filing the 2nd to last business day of 2011 on Thursday,” reports FINAlternatives. “It is unclear when the new vehicles will actually launch.”
The first of AQR’s new funds is expected to include a so-called “black swan” tail-risks fund. Reportedly, AQR will also be launching a global total return fund. The strategy for the third fund, which is to be named for former British Prime Minister Winston Churchill, Cliff Asness’ favorite historical figure, has yet to be announced. The minimum investment required for each of the three new funds is set at $5 million.
The venture is only the latest for AQR Capital. Asness recently has begun to move into largely uncharted area for a hedge fund manager – mutual funds. AQR currently has nine mutual funds with combined assets at $5.5 billion. In other words, AQR is offering a very sophisticated investment product at a low price – mutual funds don’t have the high management and performance fees hedge funds do. Given poor hedge fund performance across the board, Asness is offering what essentially the same product as he does with his hedge funds but without the high hedge fund fees.