AQR Capital Management surpasses $140 billion in assets by selling funds designed to generate tax-offsetting losses for investors.
AQR Capital Management reached $140 billion in assets by March 2026, driven by a strategy that converts investments into tax losses. The firm’s Flex strategy turns a $100 million investment into $580 million in losses over a decade using shorts and leverage, according to reports.
The approach stems from a 1993 study highlighting how taxes erode market gains. Founder Cliff Asness built AQR around this insight, capitalizing on demand from high-net-worth investors seeking tax efficiency. The strategy has drawn scrutiny from Treasury officials and prompted brokerages like Charles Schwab and Fidelity to restrict new accounts.
The fund’s growth reflects broader adoption of tax-optimization products, despite regulatory concerns over unintended consequences.