Quick Clips

Quick Clips: Shorting in ESG Strategies

In recent years, increased emphasis on sustainability practices in the investment community have caused investors and asset managers to prioritize their Environmental, Social and Governance (“ESG”) efforts. Hear from AQR’s Head of ESG Strategy, Brad Jones, about how investors can use shorting to more strongly express ESG views and hedge climate risks.

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Quick Clips

Quick Clips: Can Machine Learning Help Manage Climate Risks?

As climate change is becoming an increasingly observed phenomenon and understood to be caused by carbon and carbon-equivalent emissions, investors are adjusting their portfolios to prepare for a future regime shift to a lower-carbon economy.

Quick Clips: What’s the Worst That Should Happen?

While expected returns on traditional assets are trending lower than their historical averages, the same is not true for the associated risks. Given this, setting investors’ expectations may be more important today than ever.

Quick Clips

Quick Clips: Yield Floors and Asset Allocation - When Is the Role of Bonds Impaired?

Over the past few years, yield levels have sparked questions around the role of bonds in asset allocation. Investors worried that bonds faced asymmetric risks: yields had limited room for further declines and were bound by a floor, which limited any potential upside. We explain how the existence of a yield floor doesn't necessarily doom bonds.

Quick Clips

Quick Clips: Estate Tax Planning and GRATs

Grantor Retained Annuity Trusts (GRATs) are a popular way for U.S. taxable investors to transfer wealth to the next generation. Hear from AQR’s Portfolio Solutions Group and Specialized Investments Group on the benefits of these estate planning tools, as well as potential ways to maximize their efficiency.

Quick Clips

Quick Clips: Long-Short Tax-Loss Harvesting Strategies

Hear from the AQR Specialized Investments Group on the benefits of incorporating shorting into tax-loss harvesting strategies.

Quick Clips

Quick Clips: (Car)Bon Voyage

Adoption of ESG investment principles is a global trend for investors. While different regions are in various stages of implementation, we see a consistent theme: the reduction of carbon emissions in portfolios, some with the stated goal of getting to “net zero.” But how do we get there and how long could it take?

Quick Clips: Tax Aware Alternatives

Hear from Ted Pyne, Head of AQR’s U.S. Wealth Group, on the potential benefits of tax aware alternatives for U.S. taxable investors.

Quick Clips: Still Dislocated? AQR's Arbitrage Outlook

The sharp deleveraging across arbitrage markets in March 2020 was followed by very strong performance in 2H 2020. In our recent webinar and summary, we review what drove last year’s returns in SPACs, convertibles and mergers, and discuss why we are optimistic about the outlook for 2021 and beyond.


Game On: Social Networks and Markets

This paper studies how echo-chamber effects and fake news can lead to disagreement and misinformation with effects on investors’ portfolios and market prices. It presents a model how an investment idea can propagate through a social network, generating a trading frenzy with high turnover, a bubble in the price, and high price volatility. The paper also presents empirical evidence on the dramatic events related to the GameStop stock in January 2021 and discusses broader economic implications.

Quick Clips

Quick Clips: Hedging Climate Change News

Climate change is becoming an ever-increasing concern for investors. While this is a long term issue with no single solution, we explore one approach of using climate change language as data to help position the portfolio against longer-term climate risks.