AQR Large Cap Relaxed Constraint Equity Fund

QLRIX
  • daily nav $12.91
  • change $0.00
  • daily return 0.00%
  • inception date 12/14/2016
  • AUM $14MM

As of December 06, 2019

  About the Fund

Investment Objective

Please note this Fund will be liquidating on or about December 20, 2019. 

Seeks long-term capital appreciation.

Loosening the Long-Only Leash

Unlike long-only portfolios, relaxed constraint strategies allow for a limited amount of shorting, which can provide greater return potential by amplifying the expression of both negative and positive views.

Investment Approach

Using a systematic, multi-factor investment research process, the Fund develops a ranking of every stock in the investable universe. Based on these rankings, the Fund over- and underweights securities, industries, and sectors relative to the Russell 1000 Index.

“Relaxed Constraint” reflects the Fund’s ability to take long and short positions in the equity securities in which it invests. The Fund invests approximately 130% of the portfolio’s assets long, and 30% short, targeting 100% net exposure to the market.

Selling securities short allows the Fund to reflect to a greater extent, compared to a long-only approach, the Manager’s views on securities it expects to underperform.

Reinvesting the short sale proceeds allows the Fund to take additional long positions, increasing the portfolio’s exposure to securities the Manager expects to outperform.

Why Invest in the AQR Large Cap Relaxed Constraint Equity Fund?

Opportunity to Outperform
The Fund invests 130% of the portfolio’s assets long and 30% short, maintaining 100% net exposure to the market. The ability to have larger over- and underweights relative to the benchmark may provide greater return potential than a traditional long-only approach.
Disciplined Investment Process
The Fund uses a systematic, rules-based approach to select stocks for the portfolio. The result is a portfolio constructed without emotion, based on historically proven drivers of returns such as value, momentum, quality and other proprietary factors.
Broadly Diversified Portfolio
The Fund invests in the full spectrum of stocks across the U.S. large cap universe. It seeks to benefit from holding numerous small and moderate-sized active positions, rather than fewer, more concentrated bets.
  Portfolio Characteristics

Sector Exposures

As of September 30, 2019

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Fund Benchmark Fund - Index
Communication Services 14.94% 9.83% 5.12%
Consumer Discretionary 12.24% 10.32% 1.91%
Consumer Staples 6.16% 7.01% -0.86%
Energy -1.50% 4.26% -5.76%
Financials 11.40% 13.20% -1.80%
Health Care 13.60% 13.34% 0.26%
Industrials 12.44% 9.69% 2.74%
Information Technology 27.60% 22.04% 5.55%
Materials -0.30% 2.83% -3.14%
Real Estate 0.18% 4.02% -3.84%
Utilities 3.25% 3.45% -0.20%
Total 100.00% 100.00% 0.00%

Portfolio Statistics

As of September 30, 2019

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# of stocks 370
Price Momentum 0.14
EPS Growth (5 Year) 16.81
P/B 3.69
P/E (trailing 12 months) 15.08
Median Market Cap ($MM) 9,728
Average Market Cap ($MM) 250,493
# of long holdings 273
# of short holdings 98
Long Exposure (% of NAV) 128.37%
Short Exposure (% of NAV) 29.23%
  Performance

Annualized Total Returns

As of November 30, 2019

MTD YTD 1YR Since Inception 12/14/2016 Gross Expense Ratio Net Expense Ratio*
AQR Large Cap Relaxed Constraint Equity Fund 2.38% 21.79% 13.65% 9.69% 2.06% 1.33%
Russell 1000 Total Return Index 3.78% 27.74% 16.10% 13.94%
AQR Large Cap Relaxed Constraint Equity Fund Russell 1000 Total Return Index
QTD 2.38 % 3.78 %
YTD 21.79 % 27.74 %
1YR 13.65 % 16.10 %
Since Inception 12/14/2016 9.69 % 13.94 %
Gross Expense Ratio 2.06%
Net Expense Ratio* 1.33%

As of September 30, 2019

QTD YTD 1YR Since Inception 12/14/2016 Gross Expense Ratio Net Expense Ratio*
AQR Large Cap Relaxed Constraint Equity Fund 2.42% 15.57% -1.36% 8.24% 2.06% 1.33%
Russell 1000 Total Return Index 1.42% 20.53% 3.87% 12.48%
AQR Large Cap Relaxed Constraint Equity Fund Russell 1000 Total Return Index
QTD 2.42 % 1.42 %
YTD 15.57 % 20.53 %
1YR -1.36 % 3.87 %
Since Inception 12/14/2016 8.24 % 12.48 %
Gross Expense Ratio 2.06%
Net Expense Ratio* 1.33%
  Managers

Michele L. Aghassi

Principal

  • 21 years of experience
  • 14 years at AQR

Ph.D., Massachusetts Institute of Technology

B.S., Brown University

Andrea Frazzini

Principal

  • 14 years of experience
  • 11 years at AQR

Ph.D., Yale University

M.S., London School of Economics

B.S., University of Rome III

Jacques A. Friedman

Principal

  • 23 years of experience
  • 21 years at AQR

M.S., University of Washington

B.S., Brown University

  Fees & Minimums

Investment Minimums

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Individual Investors $5 Million
Institutional Investors None
Accounts Offered by Financial Advisors None

Shareholder Fees

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Sales Load None
Deferred Sales Load None
Redemption Fees None

Annual Fund Operating Expenses

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Management Fee 0.60%
Distribution (12b-1) Fee None
Other Expenses  
     Dividends On Short Sales 0.53%
     All Other Expenses 0.93%
Acquired Fund Fees 0.00%
Gross Expenses 2.06%
Less: Fee Waivers and/or Expense Reimbursements 0.73%
Net Expenses* 1.33%
Fund Adjusted Expense Ratio
Adjusted Expense Ratio 0.80%

An investment in any of the AQR Funds involves risk, including loss of principal. The value of the Funds’ portfolio holdings may fluctuate in response to events specific to the companies in which the Fund invests, as well as economic, political or social events in the United States or abroad. Please refer to the prospectus for complete information regarding all risks associated with the Funds. An investor considering the Funds should be able to tolerate potentially wide price fluctuations. The Funds are subject to high portfolio turnover risk as a result of frequent trading, and thus, will incur a higher level of brokerage fees and commissions, and cause a higher level of tax liability to shareholders in the Funds. The Funds may attempt to increase its income or total return through the use of securities lending, and they may be subject to the possibility of additional loss as a result of this investment technique.

Information about how each Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 will be available no later than August 31. Please click here to view the most recent Form N-PX for the AQR Funds.

PRINCIPAL RISKS:
This Fund is not suitable for all investors. An investor considering the Funds should be able to tolerate potentially wide price fluctuations. The Funds may attempt to increase its income or total return through the use of securities lending, and they may be subject to the possibility of additional loss as a result of this investment technique.

An investment in the Fund is subject to risks, including the possibility that the value of the Fund’s portfolio holdings may fluctuate in response to events specific to the companies in which the Fund invests, as well as economic, political or social events in the United States or abroad. 

Diversification does not eliminate the risk of experiencing investment losses.

As part of the Fund’s principal investment strategy, the Fund may use leverage through activities such as entering into short sales or purchasing derivative instruments, which exposes the Fund to additional risks including increased volatility, lack of liquidity, and possible losses greater than the Fund’s initial investment as well as increased transaction costs.

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.

 

 

 

Performance data quoted represent past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. All returns shown are total returns that assume reinvestment of dividends and capital gains. Returns for periods under a year are cumulative, all others are average annual returns. Investment returns and principal will fluctuate with market and economic conditions and you may have a gain or loss when you sell shares. From time to time the Fund’s advisor may waive fees or reimbursed expenses, without which performance would have been lower. Please call 866-290-2688 for most recent month-end performance.

Performance shown prior to a share class’s inception date reflects the historical performance of the Fund’s Class I shares, calculated using the fees and expenses of the Class N or Class R6 shares, respectively.

© 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. 

View definitions of benchmarks and other terms used here.

Diversification does not eliminate risk. Indexes are unmanaged and one cannot invest directly in an index.

The Adviser has contractually agreed to reimburse operating expenses of the Funds at least through January 28, 2020 for, Large Cap Defensive Style Fund, International Defensive Style Fund, Emerging Defensive Style Fund, Large Cap Momentum Style Fund, Small Cap Momentum Style Fund, International Momentum Style Fund, TM Large Cap Momentum Style Fund, TM Small Cap Momentum Style Fund, TM International Momentum Style Fund, Large Cap Multi-Style Fund, Small Cap Multi-Style Fund, International Multi-Style Fund, Emerging Multi-Style Fund, TM Large Cap Multi-Style Fund, TM Small Cap Multi-Style Fund, TM International Multi-Style Fund, TM Emerging Multi-Style Fund, Large Cap Relaxed Constraint Equity Fund, International Relaxed Constraint Equity Fund, Emerging Relaxed Constraint Equity Fund, Global Equity Fund, International Equity Fund, Core Plus Bond Fund and April 30, 2020 for Diversified Arbitrage Fund, Equity Market Neutral Fund, Global Macro Fund,  Long/Short Equity Fund, Managed Futures Strategy Fund, Managed Futures Strategy HV Fund, Multi-Strategy Alternative Fund, Risk-Balanced Commodities Strategy Fund, Style Premia Alternative Fund, Style Premia Alternative LV Fund, Volatility Risk, Premium Fund, Multi-Asset Fund, Risk Parity II HV Fund, Risk Parity II MV Fund. For additional details on annual fund operating expenses for each Fund, please see the underlying Funds’ prospectus.

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.

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