AQR next?

Dud? Joined: 03 Apr 2008 Posts: 1

AQR to shutter hedge fund

AQR Capital Management tells investors it will unwind its Global Relative Fund by the end of April.

By Katie Benner, writer-reporter

NEW YORK (Fortune) -- After months of poor performance, AQR Capital Management plans to close at least one of its hedge funds at the end of this month.

According to an investor letter obtained by Fortune on Thursday, AQR's Global Relative Value Fund "has already begun unwinding positions in order to ensure an orderly liquidation and close of the fund on April 30."

The fund was down 21% last year and is among the 34 funds managed by AQR. Several of the firm's funds have lost value since the credit crisis hit last summer.

According to a Bloomberg report, the Greenwich, Conn. firm's flagship $2.9 billion Absolute Return Fund was down almost 15% through Feb. 15, and a riskier version of the fund had lost 25% of its value. AQR's Asset Allocation Fund was down 16% through the period. To top of page

First Published: April 3, 2008: 3:07 PM EDT

Posted: Sat Apr 05, 2008 5:05 am

Interesting... Global Relative Value is not really a hedge fund per se; it is just a 401k fund somehow layered on top of Global Asset Allocation. I'm not clear whether that is being shuttered.

Looks like AQR should go on watch.

Dud? Joined: 08 Feb 2008 Posts: 20 Location: Cambridge, MA

That's pretty surprising. I thought AQR was "Goldman like." I guess Goldman has had some recent trouble too though.

Posted: Thu Apr 10, 2008 8:05 pm

Richard,

I think Goldman just moved their troubles into the shadowy "Level 3" pile:

http://implode-explode.com/vie.....stqtr.html

Gotta love kicking the can down the road.i

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