Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

New AQR Risk Parity Funds

The literature on the AQR site has me dumbfounded. I own AQRNX today and am happy with it. The same managers now running two more of such funds - one with MV and one with HV - different levels of volatility.

So is AQRNX VHV or Very High Volatility or is it LV = Less Volatility?

Comments

  • Strange, are they on asset gathering mode?
  • Risk Parity II (which comes in HV/MV flavors) is somewhat different in terms of what assets it holds.

    From the prospectuses ("prospecti?")

    AQR Risk Parity: "The Fund pursues its investment objective by allocating assets among major liquid asset classes (including global developed and
    emerging market equities, global nominal and inflation-linked government bonds, emerging market fixed income, sovereign debt, the
    credit spreads of mortgage-backed securities and corporate and sovereign debt, developed and emerging market currencies, and
    commodities)."

    AQR Risk Parity II: "The Fund pursues its investment objective by allocating assets among major liquid asset classes (including global developed and
    emerging market equities, global nominal and inflation-linked government bonds, developed and emerging market currencies, and
    commodities)."

  • Yes I saw that. instead of 60 different asset classes the newer fund hold 50 different asset classes.

    Same question. Does this make a diff?
  • A marketing ploy to forget.
  • Err...not simple, because then i need to re-examine my position in AQRNX. Just like when Grandeur Peak or Wasatch or Matthews Asia open funds...

    I want to understand the necessity. Fund will not sustain itself without demand and AQR actually does very little marketing to individual investors.
  • edited May 2013
    Reply to @VintageFreak: AQR entirely changed its strategy (and I believe pretty much stated as much if I remember correctly) to market primarily to advisors not long after the launch of their funds, which is probably a much more sustainable strategy as they're marketing towards advisers with larger pools of $ to invest than most retail investors.

    I continue to hold AQR funds and am not bothered by their launch of a wider array of funds. They closed AQRNX and are offering a different version of the strategy, as there was clearly still demand, given the popularity of AQRNX.


  • Thanks Scott. Didn't even know AQRNX was closed. M* lists it as open even right now. Am going to research their Multialternative fund. Happenned to notice on their website when I was there.

    Best.
Sign In or Register to comment.