AQR Diversifying Strategies: A Core Alternative Solution

Alternative investments can complement a traditional stock and bond portfolio while providing valuable diversification and return benefits. Investors may further benefit from investing in a combination of alternatives as a way to gain exposure to different strategies and sources of return.

Why Invest in Alternatives?

In this video introduction, we outline the potential benefits of investing in alternatives and explain how they may enhance a traditional portfolio.

Risk Disclosures:
Alternative investing strategies such as Equity Market Neutral and Managed Futures involve the use of derivatives, forward and futures contracts, and commodities, which can lead to additional risks including increased volatility, lack of liquidity, and possible losses greater than the initial investment as well as increased transaction costs. All investors considering these strategies should be able to tolerate wide price fluctuations.  Arbitrage strategies have the risk that the anticipated opportunities do not play out as planned, resulting in potentially reduced returns or losses. Before trading, investors should carefully consider their financial position and risk tolerance to determine if the proposed trading style is appropriate. All investing is subject to risk including the loss of principal. All funds committed to such a trading strategy should be purely risk capital. Past performance is no guarantee of future results. Diversification does not eliminate risk.

The AQR Diversifying Strategies Fund allocates to AQR mutual funds, providing exposure to a number of alternative strategies.

The strategic allocations shown above may vary based on the conditional attractiveness of different opportunities. It is expected that on a regular basis the Fund will maintain an allocation to cash of around 2%, although this allocation may vary depending on market conditions. Fund holdings are subject to change and should not be considered a recommendation to buy or sell securities. The Fund expects to rebalance on a quarterly basis, though rebalancing may occur more or less frequently depending on market conditions. Between rebalances the Fund’s allocation to each underlying fund may deviate from the stated percentages shown above.


Benefits to Investors Include:

A Core Alternative Allocation
The Fund seeks to provide an all-in-one solution for investors seeking a strategic, long-term approach to alternatives.
Low Exposure to Traditional Markets
The Fund seeks reduced sensitivity to stock and bond market movements, which can help improve portfolio resilience across various market environments.
Multiple Sources of Return
The Fund offers diversified exposure to a range of alternative strategies and return sources.

There are risks involved with investing including the possible loss of principal. Past performance does not guarantee future results. 

The Fund is new and has a limited operating history. 

The Fund is not a complete investment program and should be considered only as one part of an investment portfolio. The Fund is more appropriate for long-term investors who can bear the risk of short-term NAV fluctuations, which at times, may be significant and rapid, however, all investments long- or short-term are subject to risk of loss. Due to the Fund’s strategy of investing in underlying funds (“affiliated funds”), shareholders bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such affiliated funds.

The affiliated funds will enter into short sales and/or make investments in futures contracts, forward contracts, options, swaps and other derivative instruments. These derivative instruments provide the economic effect of financial leverage by creating additional investment exposure to the underlying instrument, as well as the potential for greater loss. If an affiliated fund uses leverage through activities such as entering into short sales or purchasing derivative instruments, the affiliated fund has the risk that losses may exceed the net assets of the affiliated fund. The Fund could miss attractive investment opportunities by underweighting strategies that subsequently experience significant returns and could lose value by overweighting strategies that subsequently experience significant declines.

Derivatives may be more sensitive to changes in economic or market conditions than other types of investments; this could result in losses that significantly exceed the fund’s original investment. Alternative investments strategies can be subject to increased risks and costs and investors must determine if the addition of these types of investments is appropriate for their specific financial objectives. Diversification and asset allocation do not ensure a profit or guarantee against a loss. 

An investment in accordance with the Fund’s strategy is subject to risks, including the possibility that the value of the portfolio holdings may fluctuate in response to events specific to the companies in which the affiliated funds invest, as well as economic, political or social events in the United States or abroad. International investments are subject to certain risks, including currency movements and social, economic and political uncertainties, which could increase volatility. These risks are heightened in emerging markets. Commodities and futures generally are volatile and involve a high degree of risk. Investments in alternative strategies employ complex investment strategies and carry substantial risk. There can be no assurance a fund’s investment objective or strategies will be successful. Investing involves risk, including risk of loss. 

Given the complexity of the investments and strategies of the affiliated funds, the Multi-Strategy Team relies heavily on quantitative models and information and data supplied or made available by third parties. There is no guarantee that the use of the models and data will help the affiliated funds achieve their objectives. When selecting investments for the Fund, the AQR Multi-Strategy Team limits its selection to AQR mutual funds, so they will select AQR mutual funds even in cases where there are third party mutual funds that are less expensive, or that have longer track records or higher historical returns. AQR has a conflict of interest when it establishes the Fund’s target asset classes, asset allocation objectives or ongoing allocations, because it will allocate only to asset classes where AQR mutual funds are available.

The information is intended to be educational and is not tailored to the investment needs of any specific investor. The information presented herein should not be the primary basis of your investment decisions. You should carefully research any fund you may be considering prior to making an investment decision. Another allocation and other investments, including non-AQR funds, having similar risk and return characteristics may be available. We suggest only AQR funds for the Fund and other fund families may have other options available, including funds with different features and costs.

We can change or update the Fund at any time. Neither AQR nor ALPS will notify you when they are updated. The Fund does not attempt to consider the effect of income taxes on performance or returns and do not reflect any opinion on the tax-appropriateness of the portfolio for any investor. The Fund does not consider the effect of taxes, fees and/or expenses associated with investing. Please consult with your investment or tax advisor, if applicable, prior to taking action.

AQR is the investment adviser to the AQR mutual funds included in the Fund and is entitled to receive an advisory fee from each fund, as reflected in the fund’s prospectus. Additional investments in the AQR mutual funds selected the Fund can lead to additional advisory fees paid to AQR.

There can be no assurance that any investment strategy will be successful.


© AQR Funds are distributed by ALPS Distributors, Inc. AQR Capital Management, LLC is the Investment Manager of the Funds and a federally registered investment adviser. ALPS Distributors is not affiliated with AQR Capital Management. 

Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, please call 1-866-290-2688 or click here to view or download a prospectus online. Read the prospectus carefully before you invest. 

The information provided herein (including any separate documents that may be accessed through this website) is not directed at any investor or category of investors and is provided solely as general information about our products and services and to otherwise provide general investment education. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of AQR Capital Management, LLC (“AQR Capital”) nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement investor, contact your financial advisor or other fiduciary unrelated to AQR about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances.

Diversification does not eliminate the risk of experiencing investment loss. There are risks involved with investing including the possible loss of principal.

View definitions of benchmarks and other terms used hereOne cannot invest directly in an index.

There are risks involved with investing including the possible loss of principal.
Past performance does not guarantee future results.
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