The minimum investment for AQR funds can be as low as $2,500, depending on the specific fund and its share class. AQR offers various investment products, and their initial investment requirements vary significantly based on the design of each fund and its targeted investor type.
AQR, a quantitative investment management firm, structures its funds with different share classes to cater to a diverse range of investors, from individual retail clients to large institutional entities. These different classes come with varying minimum investment requirements, fee structures, and sometimes even different distribution channels.
AQR Fund Minimums by Share Class
Minimum initial investments for AQR funds can differ greatly across their offerings. The table below illustrates examples of minimum investment requirements for select AQR funds and their respective share classes:
| Fund Name | Ticker | Minimum Initial Investment |
|---|---|---|
| AQR Long-Short Equity I | QLEIX | $5,000,000 |
| AQR Long-Short Equity N | QLENX | $2,500 |
| AQR Long-Short Equity R6 | QLERX | $50,000,000 |
| AQR Risk-Balanced Commodities Strat R6 | QRCRX | $50,000,000 |
As demonstrated, the AQR Long-Short Equity N share class presents the lowest initial investment requirement among these examples, making it accessible to a broader range of individual investors. In contrast, institutional or retirement plan share classes like "I" or "R6" typically require substantially higher initial investments.
Understanding AQR Share Classes
The varying minimum investments are primarily due to the different share classes associated with AQR funds, each designed for specific investor profiles:
- N Shares: These are typically structured for individual investors and often have the lowest minimum investment thresholds, aiming for broader accessibility.
- I Shares: Commonly designed for institutional investors, such as pension funds, endowments, or high-net-worth individuals, these shares usually feature significantly higher minimum investment requirements.
- R6 Shares: Often utilized within retirement plans (e.g., 401(k)s) or by large institutional investors, R6 shares generally have very high minimums and are structured to offer lower operating expenses due to their scale.
It is important for prospective investors to identify the specific fund and share class that aligns with their investment goals and financial capacity.
