Cliff Asness’ AQR sees multiple hedge funds up double digits in 2025, beating the market

Cliff Asness’ AQR Capital Management has once again proven its prowess in navigating complex financial landscapes, with multiple hedge funds reporting impressive double-digit returns in the first half of 2025, significantly outperforming the broader market. This remarkable financial performance underscores AQR’s strategic acumen and its ability to capitalize on market dynamics amidst fluctuating conditions, solidifying its position as a leading force in investment strategy. The firm’s diverse array of funds has delivered substantial gains, setting a high bar for market returns in a period marked by both volatility and significant rebounds.

Among its top performers, AQR’s Apex strategy, a robust multi-asset approach encompassing stocks, macro positions, and arbitrage trades, rallied an impressive 11.4% in the first six months of the year. This strategy, boasting $4.3 billion in assets under management (AUM), demonstrated exceptional agility in capturing gains. Concurrently, the firm’s long-short Delphi equity fund, with $4.1 billion in AUM, also posted a strong showing, achieving an 11.6% net gain after fees. These figures highlight the effectiveness of AQR Capital Management’s sophisticated investment strategies in delivering superior financial performance.

Further solidifying AQR’s stellar half-year, its alternative trend-following Helix strategy recorded a respectable 7.4% return. These significant gains from AQR’s hedge funds occurred within a broader market context that saw the S&P 500 rebound to a 5.3% year-to-date increase, following a tumultuous period. AQR’s ability to not only weather but thrive during periods of market uncertainty speaks volumes about the resilience and effectiveness of its quantitative models and active investment strategy.

The foundation of AQR’s success lies deeply rooted in its intellectual origins. Co-founded in 1998 by Cliff Asness after his tenure at Goldman Sachs, AQR Capital Management’s investment philosophy was meticulously developed by Asness and his partners during their Ph.D. program at the University of Chicago. This academic rigor led to the establishment of a quant-driven firm, deeply committed to systematic approaches, particularly focusing on value and momentum strategies. This foundational emphasis on data-driven insights has consistently informed its successful market returns.

In recent years, AQR has strategically expanded its methodological toolkit, successfully incorporating multi-strategy approaches that have further diversified its portfolio and enhanced its performance. This evolution has contributed significantly to the firm’s overall growth, with its total assets under management escalating from approximately $99 billion at the start of 2024 to a formidable $142 billion. This substantial increase in AUM is a testament to the market’s confidence in AQR’s sophisticated investment strategy and its consistent delivery of strong financial performance. The firm’s adaptability and expansion into new areas have clearly paid dividends for its hedge funds.