AQR Launches $350 Million ESG Fund to Combine Sustainable Investing with Market-Beating Returns

AQR Capital Management LLC has raised approximately $350 million for its new Adaptive Equity Market Neutral UCITS Fund, which integrates environmental, social, and governance (ESG) criteria into its investment strategy. Led by AQR co-founder Cliff Asness, the fund targets stocks with strong ESG profiles while shorting those with weaker scores. Michele Aghassi, head of sustainable investing at AQR, emphasizes that the fund’s success depends on the specific ESG characteristics involved. Despite ongoing debate and mixed performance in the ESG sector—such as the S&P Global Clean Energy Index’s nearly 30% drop since early 2023 compared to the S&P 500’s 40% rise—the fund aims to demonstrate that aligning ESG considerations with financial performance is feasible. As ESG investing evolves, AQR’s fund seeks to balance these criteria without compromising returns, reflecting broader trends in the industry. Resources: https://esgnews.com/aqr-launches-350-million-esg-fund-to-combine-sustainable-investing-with-market-beating-returns/