All style portfolios are not the same. Ronen Israel, Principal at AQR, discusses “craftsmanship alpha”—the important choices made in constructing and implementing factor-based strategies—in a recent interview with Institutional Investor.
AQR Co-founder David Kabiller and Northwestern University’s International Institute for Nanotechnology have awarded the second-ever Kabiller Prize to MIT’s Robert Langer. Read more about David’s motivation for endowing the award and what it means to the field of medicine and biology.
AQR is a global investment management firm built at the intersection of financial theory and practical application. We invest on behalf of our clients — including institutional investors, such as pension funds, defined contribution plans, insurance companies, endowments, foundations, family offices and sovereign wealth funds, as well as RIAs, private banks and financial advisors. Our commitment to these clients is to help them exceed their long-term objectives. We do this by filtering out market noise to identify and isolate what matters most, and by implementing ideas that stand up to rigorous testing.
Our focus on research-driven, practical insights powered by advanced technology, economic intuition and firm-wide risk management, has made us leaders in alternative and traditional strategies and explains why so many types of investors seek our expertise in meeting their financial challenges.
AQR’s collegial culture fosters innovative ideas and perspectives. The people who thrive at AQR are unconventional thinkers fascinated by how markets work, and by the larger world around them. Through the power of collaboration, transparency and openness, all employees truly have the opportunity to contribute and to make an impact.
Our culture is grounded in academic rigor. We share a spirit of intellectual curiosity that drives us to test theories and challenge assumptions in the search for truth, and fosters a deep commitment to excellence − more like a graduate finance seminar than a typical office environment.
Based in Greenwich, Connecticut, with offices in Boston, Chicago, Los Angeles, London and Sydney, we have over 600 employees. Visit www.aqr.com/talent to learn more.
Intellectual dexterity is a common trait at AQR. It drives our ability to ask difficult questions and challenge even long-held assumptions. You’ll find that everyone here, whatever their role, understands that although there is a rarely a perfect solution, there is always a best solution.
At AQR, we insist on having fundamental economic explanations for why our models did well in the past and why we expect them to do well over the long term. Performance alone isn’t enough. If we don’t understand the intrinsic rationale, we don’t invest.
The strategies by which we invest are described in lectures, presentations and white papers. Our analyses and methodologies are transparent. In our experience, investors who understand not only what we do, but how and why we do it, are our most enduring clients.
The global financial markets are incredibly complex, and no one person is going to have all the answers. The steady growth of AQR is testament to our belief in the power of partnership: diverse, talented, motivated individuals working together, to the collective success of all involved.
As a firm, we hold ourselves to a core set of values — our fundamental beliefs and operating principles:
We are bold and agile thinkers, challenging the status quo in our pursuit of excellence and our search for truths. We work relentlessly to innovate through healthy debate, rigorous research and testing.
We continually engage with our clients. Our success is defined by how well we help them to achieve their investment objectives. We have a strong alignment of interests with our clients, and hold ourselves to the highest ethical standards and intellectual principles.
We are committed to our people. We hire the brightest and invest in their success. We constantly strive to spark curiosity, hone skills, apply talents and value contributions.
We seek to demystify investing through the sharing of our research and ideas with our investors. We believe transparency and investor education are critical in building strong, long-lasting relationships.
I have been working at AQR Capital Management full-time (More than a year)
Great learning and work environment
I do not see any downside to working here
Advice to Management
Try and conduct the most through employee recruiting possible to get best talent
I applied through college or university. The process took a week. I interviewed at AQR Capital Management (New York, NY) in September 2016.
I was interviewed by a portfolio manager on campus. The interview began with self introduction and why the company, followed by a technical question on my resume and a question about option pricing.