Founded in 1998, AQR's first product was a hedge fund before moving into more traditional investment management. It entered the mutual fund space in 2009. The firm grew significantly in the three years leading up to 2018, during which it reached USD 225 billion in assets under management and more than 900 employees. But then flows reversed, partly owing to weak performance across many of the firm's mandates amid a punishing period for the value factor, and the firm’s population began to shrink. In November 2021, as both AUM and employees continued to decrease, the firm announced a series of leadership changes and the closure of its long-only fixed-income business.
Effects of the late-2021 reset are still developing as the firm reshapes into something more akin to its form before the growth spurt. The research teams are flatter and tighter but still robust, and co-founders Cliff Asness and John Liew have reengaged with the firm on a day-to-day basis. Performance has stabilized, and net outflows have started to slow but are not yet stanched. As of June 2023, firmwide assets were USD 97 billion, employees counted 568, and the product set was more focused. Efforts on tax-aware strategies and ESG offerings are sensible paths forward, but AQR is still finding its footing again. An Average Parent rating remains apt.