Featured Insights
In our previous post, we addressed two misconceptions about the trading and hedging mechanisms of tax-aware long-short strategies. Here, we clarify that unlike direct indexing, the tax benefit of tax-aware long-short strategies comes primarily from gain deferral rather than loss harvesting, and that higher pre-tax alpha may materially enhances the strategy’s tax benefits.
While quantitative investing has long relied on technology and data, AQR argues that the AI era makes human capabilities even more valuable. The piece explores why creativity, emotional intelligence, and the ability to lead and connect with others may prove to be the most enduring competitive advantages in finance and beyond.
This article updates AQR’s earlier analysis on inflation sensitivities and inflation protection, highlighting the benefits of commodities and trend following strategies and how to evaluate different implementations. It asks, “How should you prepare for the possibility of another global inflation shock?”
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As quantitative investors, we believe that a systematic and disciplined approach is the best way to achieve long-term value. Explore our broad range of innovative, diversifying strategies.
Cliff's Perspectives
April 8, 2026
As the correlation between stocks and bonds has turned positive, many investors have questioned whether bonds still provide meaningful diversification and have looked to alternative "replacements." This perspective argues that most popular substitutes add more equity risk, not less, and shows that true diversification still requires strategies with genuinely low or negative equity beta—not simply abandoning bonds.
Investors should conduct their own analysis and consult with professional advisors prior to making any investment decisions. Diversification does not eliminate the risk of experiencing investment loss. Past performance is not a guarantee of future results. Investment process is subject to change.
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