AQR will be closing its Style Premia Alternative (MUTF:QSPIX) and Style Premia Alternative LV (MUTF:QSLIX) funds to new investors as of March 16. The funds, which posted respective gains of 8.76% and 4.02% in 2015, closed out the year as two of the top three multialternative funds in December. Clearly, they are not being closed due to poor performance - both funds finished in the top 3% of their Morningstar category for the recently concluded year. Instead, the funds are being closed to new investors because they're nearing the maximum capacity of their strategies.
QSPIX, with $2.2 billion in assets, and QSLIX, with $218 million, aren't the only alternative funds AQR has had to close for this same reason:
- In June 2012, the firm closed the AQR Diversified Arbitrage Fund (MUTF:ADAIX). The fund ranked in the top 2%, 41%, and 26% of its category from 2010 through 2012.
- In November 2012, AQR barred new investors from buying shares of its Risk Parity Fund (MUTF:AQRIX). That fund launched in late 2010 and ranked in the top 2% and 11% in 2011 and 2012.
- And in September 2013, the AQR Multi-Strategy Alternative Fund (MUTF:ASAIX) had to be closed, too. Today, the fund has a five-star rating from Morningstar, and it ranked in the top 2% of its category in 2015 (top 4% in 2014).
The procedure for how AQR will wind down new investments in QSPIX and QSLIX, and how existing shareholders will be impacted, is outlined in a January 26 SEC filing.
Past performance does not necessarily predict future results.
Jason Seagraves contributed to this article.