AQR Small Cap Multi-Style Fund (QSMLX)

Overview

The fund operates with a momentum investment strategy, focusing on securities that exhibit positive momentum. It primarily deals with large-cap companies within the U.S., ensuring a significant portion of its investments is directed towards equity or equity-related securities. These can range from exchange-traded funds and equity index futures to real estate investment trusts (REITs) or similar entities. The firm is committed to keeping at least 80% of its net assets, which includes borrowed funds for investment purposes, in large-cap U.S. companies. This approach is aimed at capitalizing on the potential high returns from companies that are currently experiencing upward trends in their market performances.

Products and Services

• Equity or Equity-Related Securities

  The fund invests in a variety of equity or equity-related securities, including stocks of large-cap companies, to capitalize on the positive momentum. This broad category ensures diversification and the potential for significant returns.

• Exchange-Traded Funds (ETFs)

  Part of its portfolio includes investments in ETFs, which are investment funds traded on stock exchanges, much like stocks. ETFs hold assets such as stocks, commodities, or bonds and generally operate with an arbitrage mechanism designed to keep it trading close to its net asset value, though deviations can occasionally occur.

• Equity Index Futures

  The fund leverages equity index futures, which are futures contracts to buy or sell a financial index at a set price on a specified future date. This allows the fund to speculate on the future direction of market indices.

• Real Estate Investment Trusts (REITs)

  Including REITs and REIT-like entities in its investment portfolio allows the fund to engage in the real estate market indirectly. REITs are companies that own, operate, or finance income-producing real estate across a range of property sectors.