AQR Style Premia Alternative Fund Class N (QSPNX)

Overview

The fund operates with a strategic investment approach that targets the achievement of its investment objective through exposure to four distinct investment styles: value, momentum, carry, and defensive. It employs a dynamic strategy that involves taking both long and short positions across a broad spectrum of asset groups, including equities, bonds, interest rates, commodities, and currencies. By leveraging derivatives and direct holdings as a means to access these asset groups, the fund aims to navigate the complexities of the global financial markets. As a non-diversified fund, it concentrates its investments rather than spreading them across a wide array of securities, allowing for a focused strategy that seeks to optimize returns.

Products and Services

• Value Investing

  This style focuses on investing in assets that appear underpriced by some forms of fundamental analysis. The premise is to invest in undervalued assets that have the potential to increase in value over time, allowing investors to capitalize on the disparity between current prices and intrinsic values.

• Momentum Investing

  Through this approach, the fund selects assets that have shown an upwards trend in price with the expectation that the assets will continue to perform well. It is based on the principle that assets that have performed well in the past will continue to perform well in the future, capturing gains from market movements.

• Carry Investing

  This investment style seeks to profit from the differential in interest rates or dividends between different markets or asset classes. By investing in assets with higher returns and borrowing in assets with lower returns, the fund aims to capture the spread between them, generating income from these discrepancies.

• Defensive Investing

  Focused on minimizing the potential for loss and protecting the value of the portfolio, defensive investing involves selecting assets that are believed to be less susceptible to market downturns. This conservative investment strategy aims to provide steady returns regardless of the market’s volatility.

• Equities

  The fund invests in stocks or shares that represent ownership interest in corporations. By taking long or short positions in equity securities, it seeks to exploit market inefficiencies and generate returns from stock price movements.

• Bonds

  Investing in debt securities issued by governments, municipalities, or corporations to finance their operations. The fund aims to benefit from interest income and potential capital appreciation by holding bonds or engaging in derivatives based on bonds.

• Interest Rates

  The fund utilizes strategies that involve speculating on the direction of interest rates in various financial markets. By taking positions in derivatives like interest rate futures or swaps, it aims to profit from changes in interest rates.

• Commodities

  By investing in raw or primary products such as oil, gold, or agricultural goods, either directly through futures contracts or indirectly via derivatives, the fund aims to leverage price movements in the commodities market for potential gains.

• Currencies

  The fund engages in currency trading strategies to take advantage of fluctuations in the foreign exchange market. Through both long and short positions in different currencies, it seeks to profit from changes in exchange rates.