AQR’s investment philosophy is defined by three core principles: fundamental investing, systematically applied and thoughtfully designed. As quantitative investors, we believe that a systematic and disciplined approach is the best way to achieve long-term value. Built over twenty-five years, our proprietary models are the result of economic intuition and well-honed insights, which are applied without bias across a broad investable universe. Our emphasis on research and precision applies to every aspect of our investment process, from design to implementation.

AQR’s systematic approach includes:

• Diversification: We construct portfolios to be highly diversified in seeking to generate more consistent returns over time.
• Risk Management: We employ a range of tools and strategies that help mitigate unintended risk.
• Transparency: We believe that when clients know our process, they are more confident investors.
• Optimization: We seek additional value when building portfolios by considering such things as transaction costs and tax implications.