Cliff Asness’s AQR multi-strategy hedge fund returns 9% in the first quarter during tough conditions
AQR Capital Management, a well-known multistrategy hedge fund, outperformed the market in the first quarter of the year despite the extreme volatility caused by President Donald Trump’s uncertain tariff policy. The firm’s Apex strategy, managed by Cliff Asness and with $3 billion in assets under management, saw a 9% rally in the quarter. This strategy combines stocks, macro, and arbitrage trades, contributing to its success.
In March alone, the Apex strategy gained 3.4%, further boosting its first-quarter performance. AQR’s Delphi Long-Short Equity Strategy also performed well, posting a 9.7% gain in the first quarter. Additionally, the firm’s alternative trend-following offering, Helix, returned 3% during the same period. AQR, which had $128 billion in assets under management by the end of March, chose not to comment on their performance.
The stock market faced significant challenges during the first quarter, particularly due to concerns surrounding Trump’s tariff policies. The S&P 500 experienced a dip into correction territory in March after reaching a record high in February. Overall, the equity benchmark was down 4.6% for the quarter, marking the end of a five-quarter winning streak. The Nasdaq Composite, known for its tech-heavy composition, saw a 10.4% decline in the quarter, the largest quarterly pullback since a 22.4% plunge in the second quarter of 2022.
Despite the market turbulence, AQR’s successful performance showcases the firm’s ability to navigate challenging market conditions and deliver positive returns for its investors. The diverse strategies employed by AQR, including the Apex strategy and the Delphi Long-Short Equity Strategy, have proven effective in generating strong results even in volatile environments. Investors will be closely watching AQR’s future performance as they continue to adapt to changing market dynamics.
