AQR Capital Management, LLC today announced the launch of its AQR Sustainable Long-Short Equity Carbon Aware Fund. 

In recent years, the importance of global issues such as climate change and workplace inequality have encouraged investors to prioritize their ESG efforts. AQR believes ESG-conscious investors should not have to choose between a responsible investment approach and a well-diversified portfolio that incorporates alternative strategies. The Fund aims to help investors meet their ESG goals, while also providing exposure to multiple sources of return that may not be available through a traditional investment strategy.

With twenty years of experience in systematic, sustainable investing, AQR believes it is uniquely positioned to expand its liquid alternatives offering to include the industry’s first sustainable long-short equity mutual fund. The Fund invests long and short across global equity markets, integrating certain Environmental, Social, and Governance (“ESG”) considerations into its security selection and portfolio construction processes and seeking to hedge climate risks. 

Compared to long-only approaches that may prohibit exposure to a company with poor ESG characteristics, the Fund’s approach of shorting companies with poor ESG profiles may allow investors to more strongly express their ESG views and more effectively achieve ESG goals, such as reducing the carbon footprint of their portfolio. 

As part of its carbon-aware approach, the Fund seeks to help investors hedge against climate risk by incorporating multiple metrics of climate exposure, such as carbon emissions and fossil fuel reserves, in an effort to hedge against climate-related investment risks.

For more information, click here: AQR Sustainable Long-Short Equity Carbon Aware Fund (QNZIX, QNZNX, QNZRX).