This Case is about FINANCIAL MANAGEMENT

PUBLICATION DATE: September 23, 2010 PRODUCT #: 214C25-PDF-CHI

AQR is a hedge fund situated in Greenwich, Connecticut, that’s contemplating offering a completely new line of merchandise to retail investors, specifically the ability to put money into the cost occurrence called impetus. There’s a substantial body of empirical evidence supporting impetus across nations and a variety of asset categories. Yet, up until this stage, impetus was a strategy so not an accessible investment strategy to most individual investors, and used almost entirely by hedge funds.

This case emphasizes the problems in executing this “mutual fund-itizing” of a hedge fund product, together with the challenges the open-ending and regulatory characteristics a mutual fund presents to many successful strategies implemented in other circumstances. Additionally, it gives pupils the ability to compute and interpret various horizons of correlations between many popular investment strategies using long time-series data and considering the possible complementarities of strategies from a portfolio building circumstance.

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