AQR Capital Management has launched three momentum indexes and mutual funds, the AQR Momentum Index, AQR Small Cap Momentum Index and AQR International Momentum Index. The three no-load mutual funds are the AQR Momentum Fund, AQR Small Cap Momentum Fund and AQR International Momentum Fund. Each requires a minimum investment of $5,000.
David Kabiller, head of client strategies at AQR, said, “When the world thinks about diversifying portfolios, the conventional approach has been to think in terms of two style dimensions—value versus growth and large cap versus small cap. However, there is another dimension which is just as important in explaining returns, and has been largely under-allocated given the current two-style investment paradigm. This is momentum.”