The AQR Managed Futures Strategy Fund STR I (AQMIX) gave a total YTD (year-to-date) return of 4.1% to its investors. It’s better than the market S&P 500’s (SPY) YTD return of 3.5%. AQMIX is an alternative mutual fund. It can be used as a substitute to hedge funds. Alternative mutual funds offer low cost and alternative investment options for the average investor.
AQMIX’s top equity future holdings include the Nikkei 225 Index Future, the KOSPI 200 Index Future, and the Hang Seng Index Future. The Hang Seng is a significant future index. It includes liquid holdings like Tencent (TCEHY), CNOOC (CEO), PetroChina (PTR), and HSBC Holdings (HSBC).
The above graph compares the returns of a portfolio of 20% AQMIX and 80% SPY with SPY’s performance.
Increased performance and decreased volatility
The portfolio outperformed the market with a YTD return of 3.6%. Also, the overall volatility of the portfolio’s price movement fell due to its increased long and short positions. As a result, AQMIX’s managed future strategy achieved its primary objective of reducing risk in market ups and downs in 2015.
Currently, alternative funds are one of the fastest growing assets traded in the market. An alternative fund like AQMIX can be used to diversify your portfolio. It can reduce the overall risk of the portfolio. It can also increase the potential for gaining a higher profit. AQMIX is one of the largest alternative mutual funds. It manages a total net asset of $10 billion.
Investors should thoroughly understand the investment methodology of each fund before investing in them.