Curious About AQR?

AQR is a global investment firm built at the intersection of financial theory and practical application. We strive to deliver superior, long-term results by looking past market noise to identify and isolate what matters most, and by developing ideas that stand up to rigorous testing. Our focus on practical insights and analysis has made us leaders in alternative and traditional strategies since 1998.

AQR Firm-Wide Total Assets Under Management*

12/31/13 $98.8 billion

12/31/12 $70.7 billion

12/31/11 $44.2 billion

12/31/10 $30.4 billion

* Includes assets managed by CNH Partners, LLC, an affiliate of AQR Capital Management, LLC.

Path to AQRHired as an intern; now is the Head of U.S. Portfolio Solutions.

Collaborates on: White papers and Alternative Thinking, a quarterly publication that provides insight into strategic and tacti-cal themes in investing.

Educates investors: On portfolio construction, risk allocation and risk management. Can name: At least 47 reasons why hes stayed at AQR. Spends time: Surfing and playing the banjo (though not at the same time).

Theres a real respect for the limitations of what we know and for being totally transparent about that yet, there is still a relentless search for the truth. Some other firms describe investing as a science, but rarely talk about how inexact that science is. AQR is really good at keeping knowledge and certainty distinct. Folks here are smart really smart but they are responsible about it.

Dan VillalonPomona Collegeb.a. in physics, 2003

University of Chicago Booth School of Business, m.b.a. in analytic finance, 2010

I enjoyed all aspects of my summer internship, from the people I worked with to the projects I worked on, and felt at home in AQRs culture. My experience here last summer ultimately led me to come back to AQR.

Gabe Frangakis Harvard Universitya.b. in applied mathematics, 2013

Path to AQRRecruited as an undergrad; rejoined after completing his Ph.D.

Returned as: A researcher in the Global Alternative Premia group.

Impressed by: The amount of responsibility analysts are given.

Excited that: Youre able to see an idea from concept through implementation.

Squeezes in: Nine holes of golf on Fridays before work.

I was very excited to come back to AQR because of its amazing work culture. Collaborating with an extremely intelligent, driven and humble group of colleagues keeps me motivated and excited about my work.

Johnny KangUniversity of Pennsylvaniab.s. in economics, b.a.s. in engineering, 2004

Harvard Universitys.m. in applied mathematics, 2009; ph.d. in business economics, 2012

Path to AQRHired as a summer intern; returned as a research analyst after graduation.

Once Played: Bass guitar in a Viking metal band called Doorway to Norway.

Compares AQR: To academia and an extension of the classroom.

Likes that: AQR is a research-driven environment.

Already saw: A project he collaborated on applied by the firm.

Challenging Conventions

Theory In Practice

The founders of AQR wanted to do things differently.AQR was founded in 1998 by Goldman Sachs alums Clifford S. Asness, Ph.D.; David G. Kabiller, CFA; Robert J. Krail; and John M. Liew, Ph.D. Building on their success, they established AQR to focus sole-ly on research and investment product development.

AQR was among the first hedge-fund managers to voluntarily register with the Securities and Exchange Commission at the firms inception. While our first product was a hedge fund, our goal was always to expand into traditional portfolio management, which we did in 2000. And in 2008, we became one of the first investment managers to offer alternative strategies in a mutual fund format.

The people that thrive at AQR are unconventional thinkers.At AQR, our employees share a common spirit of academic excellence, intellectual honesty and an unwavering commitment to seeking the truth. Were determined to know what makes financial markets tick and well ask every question and chal-lenge every assumption. We recognize and respect the power of collaboration, and believe transparency and openness to new ideas leads to innovation.

We believe that great investments are a combination of inspired thinking and superior execution. Our team applies restless, relentless thinking to the financial markets. But we also have the economic intuition, knowledge of market risk, and real-world experience to turn our ideas into actions. We take our understanding of complex financial systems and craft simple, transparent solutions, blending innovation with time-tested strategies.

Our roots are in academia.We embrace financial theory as the foundation of our business. Our halls are filled with accomplished academics, and our research is regularly pub-lished in leading journals including the Journal of Finance, the Journal of Financial Economics, and the Financial Analysts Journal.

Recent Investment Research

Quality Minus Junk A quality-minus-junk (QMJ) factor that goes long high-quality stocks and shorts low-quality stocks may earn significant risk-adjusted returns in the U.S. and globally.

Investing with StyleResearch has found four investment strategies that can potentially deliver positive long-term returns with low correlation across many asset classes and markets, using very liquid securities.

Path to AQRHired after completing her M.B.A.; now is a Vice President in Client Strategies.

Fell for: Behavioral Finance taught by Professor Andrea Frazzini (who is now a Researcher at AQR).

Previously worked: At the White House.

Recently relocated: To our new office in Los Angeles.

Searching for: The next great dumpling restaurant.

From the very beginning, one of the things that stood out about the firm was its ethical business practices. The objectives of the firm are aligned with the objectives of our clients.

Joey LeeYale Universityb.a. in political science, 2003

University of Chicago Booth School of Business, m.b.a., concentrations in analytic finance and economics, 2008

Our People

Path to AQRCompleted a summer rotation within the Client Strategies & Portfolio Solutions group; now is an Associate on the Strategy team.

Astounded that: Senior leaders take the time to educate team members.

Enjoying the: Immediate impact you can make on the organization.

Discovered that: She organically gravitated to the Strategy team during her internship.

Successfully completed: A 76-mile ultra-marathon.

I was blown away by the quality of the people: I had never encountered a group of people with such a deep commitment to excellence. The environment was so intellectually stimulating and the opportunities for long-term professional growth so compelling that I was thrilled to receive a full-time job offer.

Trish HigginsYale Universityb.a. in political science, 2007

Harvard Business Schoolm.b.a., 2013

Path to AQRRecruited as an undergrad; now is a Principal of the firm.

Hired as: A Research Analyst.

Currently is: A Principal on our Global Asset Allocation team.

Co-authored: The AQR paper, A Century of Evidence on Trend-Following Investing.

Recently read: Goodnight Moonto his two-year-old daughter.

AQR is passionate about the search for the truth. We are willing to be patient, to dig into the details to get the best research results. We dont accept things at face value, but challenge assumptions and existing conventions.

Yao Hua OoiUniversity of Pennsylvania, M&T Program b.s. in economics, b.s. in engineering, 2004

concentration in finance and major in computer engineering

AQR Capital Management, LLCTwo Greenwich PlazaGreenwich, CT 06830

p: +1.203.742.3600 f: +1.203.742.3100w: aqr.com

AQR at a Glance

AQR is a global investment management firm that is systematic and disciplined in applying quantitative research to alternative strategies and long-only portfolios

$98.8 billion in assets under management as ofDecember 31, 2013

Based in Greenwich, Connecticut with offices in Chicago, Los Angeles, London, Sydney and Hamilton, Bermuda

Founded in 1998, the firm now has 21 principals and more than 400 employees

More than one-third of employees hold advanced degrees, including 41 employees who have earned Ph.Ds.

Our clients generally include institutional investors, such as pension funds, insurance companies, endow-ments, foundations and sovereign wealth funds, as well as financial advisors

Disclosure: This information is not intended as advertising or marketing of investments, and does not constitute an offer or solicitation of an offer or any advice or recommendation to purchase any securities or other financial instruments and may not be construed as such. This document is intended for information purposes only.

Winter 2013