Preface

In the first half of 2025, AQR Capital Management, led by Cliff Asness, successfully navigated market volatility, seeing significant returns from its hedge funds. Of particular note, two of AQR's hedge funds outperformed the market by a considerable margin, highlighting the firm's strategic prowess. Asness has shaped AQR with a focus on quant-driven investments, allowing it to thrive amid unpredictable market conditions.

Lazy bag

AQR Capital Management's sophisticated strategies yielded impressive gains in 2025, with their hedge funds seeing returns that outpaced the S&P 500. The firm's $142 billion in assets under management underscores their success in value and momentum investing.

Main Body

Cliff Asness, co-founder of AQR Capital Management, has been a notable figure in the hedge fund industry since 1998. Originally launching AQR after his experience at Goldman Sachs, Asness and his partners laid the groundwork for their investment philosophy during their Ph.D. program at the University of Chicago, focusing on quantitative analysis based on value and momentum strategies.

In 2025, AQR's hedge funds not only thrived, but they also managed to significantly outperform broader market indices, reflecting the firm's adeptness in navigating financial landscapes fraught with volatility and unpredictability. The firm's Apex strategy, with $4.3 billion in assets, achieved a notable 11.4% return within the first six months of the year, effectively doubling the gains of the S&P 500.

Parallel to this, AQR's long-short Delphi equity fund delivered an 11.6% return net of fees. Such robust performance is especially remarkable given the heightened uncertainty from geopolitical tensions, specifically the trade conflict and Middle East concerns that defined global markets during this period.

The stock market saw a remarkable recovery in 2025, recovering from a near 20% dip in April. The S&P 500 index rebounded to hit new record highs, yet AQR’s strategies stood out, reinforcing the value of sophisticated, diversified approaches. Their alternative trend-following Helix strategy added another layer of success, with a 7.4% return thus far.

Beyond these achievements, AQR’s ascent in asset management, from $99 billion at the beginning of 2024 to $142 billion by 2025, underscores the firm's dynamic expansion and the trust it has garnered from investors worldwide. AQR’s evolution into a multistrategy powerhouse is a testament to its leadership and innovative investment methodologies.

Key Insights Table