AQR Large Cap Defensive Style Fund

QUERX
  • daily nav $28.69
  • change $-0.38
  • daily return -1.31%
  • inception date 9/2/2014
  • AUM $5706MM

As of June 18, 2021

  About the Fund

Investment Objective

Seeks total return.

A Lower Risk Equity Solution

The AQR Large Cap Defensive Style Fund pursues a defensive strategy that seeks to provide exposure to the U.S. market with lower risk through active stock selection, risk management and diversification.

 

Investment Approach

Many investors have become more focused on downside protection. Defensive Equity strategies seek to address this concern for stock market investors by focusing on stocks that have been more stable and less volatile, seeking to provide market-like returns with lower risk.

The investment universe for the Fund is comprised of U.S. equities, including large-cap and mid-cap companies included in the Russell 1000 Index. 

The Fund seeks to invest in stocks that exhibit low statistical risk (low volatility and low market beta 1 1 Close Beta is a measure of a stock’s sensitivity to movements of the overall stock market. ) and exhibit high-quality characteristics, such as stable earnings and high profit margins. These stocks generally are less volatile than the market average, and have the potential to produce higher risk-adjusted returns over a full market cycle than capitalization-weighted market indices. 

Why Invest in the Large Cap Defensive Style Fund?

Seeks Market-Like Returns with Lower Risk
The Large Cap Defensive Style Fund aims to deliver returns similar to its benchmark but with lower volatility. Low-risk stocks have performed similarly to riskier stocks over the long-term, suggesting that investors have not had to sacrifice significant returns when reducing risk in their portfolio.
Seeks to Outperform During Down Markets
The Fund can provide investors with an attractive risk profile when they may need it most: during market downturns. In this market condition, Defensive Equity is likely to experience negative returns, but tends to fare better than the broader market.
Exposure to High Quality Companies
The Fund commonly targets stocks of companies that have demonstrated strong fiscal health, exhibiting characteristics such as stable earnings, high profitability and low operating and financial leverage. Many of these stocks have exhibited less volatility than their equity market counterparts and have the potential to produce higher risk-adjusted returns over a full market cycle than broader market indices.
  Portfolio Characteristics

Sector Exposures

As of March 31, 2021

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Fund Benchmark Fund - Index
Communication Services 7.00% 10.52% -3.52%
Consumer Discretionary 7.68% 12.11% -4.43%
Consumer Staples 18.87% 5.81% 13.06%
Energy 0.00% 2.63% -2.63%
Financials 10.23% 11.38% -1.15%
Health Care 16.84% 13.12% 3.72%
Industrials 9.50% 9.37% 0.13%
Information Technology 17.81% 26.65% -8.84%
Materials 5.41% 2.82% 2.59%
Real Estate 0.33% 3.04% -2.72%
Utilities 6.34% 2.56% 3.78%
Total 100.00% 100.00% 0.00%

Top 10 Holdings

As of March 31, 2021

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% of Net Assets
Target 1.63%
Procter Gamble 1.56%
Facebook 1.56%
Accenture 1.55%
Costco Wholesale 1.54%
Walmart 1.52%
Verizon 1.51%
Johnson&Johnson 1.50%
Nextera Energy 1.49%
Microsoft 1.47%
Total 15.33%

Portfolio Statistics

As of March 31, 2021

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# of stocks 253
EPS Growth (5 Year) 14.25
P/B 5.40
P/E (trailing 12 months) 28.44
Debt/Equity 1.30
Median Market Cap ($MM) 31,088
Average Market Cap ($MM) 222,836
Predicted Beta 0.80
  Performance

Annualized Total Returns

As of May 31, 2021

MTD YTD 1YR 3YR 5YR Since Inception 9/2/2014 Gross Expense Ratio Net Expense Ratio*
AQR Large Cap Defensive Style Fund 1.05% 9.19% 29.38% 15.86% 15.61% 14.55% 0.31% 0.30%
Russell 1000 Total Return Index 0.47% 12.14% 42.66% 18.43% 17.46% -
AQR Large Cap Defensive Style Fund Russell 1000 Total Return Index
MTD 1.05% 0.47%
YTD 9.19% 12.14%
1YR 29.38% 42.66%
3YR 15.86% 18.43%
5YR 15.61% 17.46%
Since Inception 9/2/2014 14.55% 16.08%
Gross Expense Ratio 0.31%
Net Expense Ratio* 0.30%

As of March 31, 2021

QTD YTD 1YR 3YR 5YR Since Inception 9/2/2014 Gross Expense Ratio Net Expense Ratio*
AQR Large Cap Defensive Style Fund 3.28% 3.28% 43.54% 14.37% 14.60% 13.98% 0.31% 0.30%
Russell 1000 Total Return Index 5.91% 5.91% 60.59% 17.31% 16.66% -
AQR Large Cap Defensive Style Fund Russell 1000 Total Return Index
QTD 3.28% 5.91%
YTD 3.28% 5.91%
1YR 43.54% 60.59%
3YR 14.37% 17.31%
5YR 14.60% 16.66%
Since Inception 9/2/2014 13.98% 15.65%
Gross Expense Ratio 0.31%
Net Expense Ratio* 0.30%
  Managers

Ronen Israel

Principal

  • 25 years of experience
  • 21 years at AQR

M.A., Columbia University

B.S., B.A.S., University of Pennsylvania

Lars Nielsen

Lars N. Nielsen

Principal

  • 21 years of experience
  • 21 years at AQR

M.S., B.S., University of Copenhagen

Michele L. Aghassi

Principal

  • 23 years of experience
  • 15 years at AQR

Ph.D., Massachusetts Institute of Technology

B.S., Brown University

Andrea Frazzini

Principal

  • 16 years of experience
  • 12 years at AQR

Ph.D., Yale University

M.S., London School of Economics

B.S., University of Rome III

  Fees & Minimums

Investment Minimums

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Individual Investors Not Available
Institutional Investors $100,000
Accounts Offered by Financial Advisors $50 million or a total of $100 million combined per advisor across all Funds

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 0.25%
Distribution (12b-1) Fee None
Other Expenses  
     Dividends On Short Sales and/or Interest Expense None
     All Other Expenses 0.06%
Acquired Fund Fees None
Gross Expenses 0.31%
Less: Fee Waivers and/or Expense Reimbursements 0.01%
Net Expenses* 0.30%
  Documents

Fund Literature

Fund Reporting

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:
Past performance is no guarantee of future results. An investment in the Funds involves risk, including loss of principal.
Funds that emphasize investments in small and mid-cap companies generally will experience greater price volatility. The Adviser from time to time employs various hedging techniques, it is not possible to hedge fully or perfectly against any risk, and hedging entails its own costs.

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.  

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.

Investment in any of the funds described on this website carries substantial risk, including the possible loss of principal. There is no guarantee that the investment objectives of the funds will be achieved and returns may vary significantly over time. Investment in the funds described on this website is not suitable for all investors. Not all funds or share classes are available to all investors.

Fund offering documents contain risk warnings that are specific to each fund. Investors should only invest in a fund once they have thoroughly reviewed the prospectus and Key Investor Information Document (“KIID”) for the fund and carefully considered the relevant investment objectives, risks, charges and fees. Investors may wish to consult an independent financial advisor for personal and specific investment advice before investing.

Umbrella Fund:
The Fund is a sub-fund of AQR UCITS Funds, a Luxembourg based UCITS of which the management company is FundRock Management Company S.A.

The information contained on this website is for informational purposes only and does not constitute an offer or invitation to buy, sell or otherwise transact in any security. The information on this site is directed only at persons or entities in any jurisdiction or country where such access to information contained on this website and use of such information is not contrary to local law or regulation. Accordingly, all persons who access this website are required to inform themselves of and to comply with any such restrictions. The prospectus, KIID and the latest periodic reports for each fund are available free of charge.

Past performance does not guarantee future results.

AQR Capital Management (Europe) LLP, a U.K. limited liability partnership, is authorized by the U.K. Financial Conduct Authority (“FCA”) for advising on investments (except on Pension Transfers and Pension Opt Outs), arranging (bringing about) deals in investments, dealing in investments as agent, managing a UCITS, managing an unauthorized AIF and managing investments. This material has been approved to satisfy UK FCA COBS 4.

The use of derivatives, forward and futures contracts, and commodities exposes the Fund to additional risks including increased volatility, lack of liquidity, insolvency and possible losses greater than the Fund’s initial investment as well as increased transaction costs. Commodity prices react, among other things, to economic factors such as changing supply and demand relationships, weather conditions and other natural events, all of which may affect your investment.

The Fund is exposed to the currency markets which may be highly volatile. Large price swings can occur in such markets within very short periods and may result in your investment suffering a loss.

The Fund may be exposed to liquidity risk where, due to a lack of marketability, the Fund’s investments cannot be bought or sold quickly enough to prevent or minimize a loss.

The Fund is exposed to concentration risk as it may have increased exposure to a particular asset, reference rate or index. A fall in value of the asset, reference rate or index can result in a greater loss to the Fund which may be more than the amount borrowed or invested.

Your investment in the Fund is not guaranteed and is at risk. You may lose some or all of your investment.

The Fund relies upon the performance of the investment manager of the Fund. If the investment manager performs poorly the value of your investment is likely to be adversely affected.

More information in relation to risks in general may be found in the “Risk Factors” section of the prospectus.