Financial services group the Queensland Investment Corporation (QIC) has switched its long-only investment with Connecticut-based AQR to a long/short strategy with the manager. The move has led QIC to seed AQR’s Released Constraint (RC) Global Equity Fund for $150 million.
“The switch to the RC strategy is a better use of our risk budget and an example of where we are able to work with a manager to achieve a superior outcome for our investors,” QIC head of implemented equities Greg Liddell said.
The RC Global Equity Fund takes a 140 per cent long and 40 per cent short position to its stock portfolio and the strategy includes currency and country overlays.
“The move to allow shorting in the stock portfolio, combined with an overlay that generates returns from relative movements in currency and countries, provides an alpha stream that is diversified and well engineered,” QIC senior portfolio manager Greg Clarke said.
QIC first appointed AQR to its manager lineup in November 2005. The firm manages more than $50 billion in funds under management.
