In the summer of 2008, AQR Capital Management is planning to launch a new hedge fund strategy. Portfolio exposure DELTA proposed offer investors a basket of nine major strategies of hedge funds. DELTA strategy is innovative in two ways. First, in terms of structure, AQR would be? Implementing these strategies fundamental objective well-defined investment process, is to provide exposure to a diversified portfolio of hedge fund strategies. Secondly, it refers to its costs, the new DELTA strategy would require relatively lower costs investors management fees 1% of the 10% yield in an effective constraint (or, failing that, management fees 2% only). This scale was low compared to the industry in which the management fee of 2% plus 20% of the performance, often without hindrance, is standard.
Daniel B. Bergstresser,
Lauren H. Cohen,
Randolph B. Cohen,
Source: Harvard Business School
Release Date: October 27, 2011. Prod #: 212038-PDF-ENG
Case solution strategy AQR DELTA