AQR Equity Market Neutral Fund

Overview

The AQR Equity Market Neutral Fund is a mutual fund that employs a market-neutral investment strategy, aiming to generate positive absolute returns regardless of market direction. By taking long positions in stocks expected to outperform and short positions in those anticipated to underperform, the fund seeks to isolate alpha through security selection while maintaining minimal exposure to systematic market risk. This approach is designed to provide consistent, low-volatility returns uncorrelated with broad equity markets, making it a potentially attractive diversifier in a liquid alternatives portfolio. The fund utilizes quantitative models and rigorous research to identify relative value opportunities between pairs or groups of stocks. It invests across hundreds of companies globally, employing a diverse array of investment signals. The strategy focuses on stock selection to generate alpha, aiming to produce returns independent of market movements. The fund's management team includes experienced professionals such as Cliff Asness, Ph.D., Michele L. Aghassi, Ph.D., Andrea Frazzini, Ph.D., and John J. Huss. As of June 30, 2025, the fund's assets under management were approximately $2.14 billion. The fund offers multiple share classes, including Class I (QMNIX), Class N (QMNNX), and Class R6 (QMNRX), each with varying minimum investment requirements and expense ratios. The fund's performance is benchmarked against the ICE BofA U.S. 3-Month Treasury Bill Index, and it has received high ratings from Morningstar, reflecting its strong risk-adjusted returns over multiple periods. Investors should carefully consider the fund's investment objectives, risks, charges, and expenses before investing.

Investment Focus

• Minimum initial investment: $5,000,000 for Class I shares, $2,500 for Class N shares, $50,000,000 for Class R6 shares
• Expense ratios: 5.49% for Class I, 5.75% for Class N, 5.40% for Class R6
• Investors should be able to tolerate potentially wide price fluctuations and understand the risks associated with market-neutral strategies.