Case Study Analysis and Solutions

Case ID: 212038

Abstract:
Case Solution & Analysis for AQR's DELTA Strategy by Daniel B. Bergstresser, Lauren H. Cohen, Randolph B. Cohen, Christopher Malloy
In the summer of 2008, AQR Capital Management was considering the launch of a new hedge fund strategy. The proposed DELTA portfolio would offer investors exposure to a basket of nine major hedge fund strategies. The DELTA strategy would be innovative in two ways. First, in terms of its structure, AQR would implement these underlying strategies using a well-defined investment process, with the goal being to deliver exposure to a well-diversified portfolio of hedge fund strategies. Second, it terms of its fees, the new DELTA strategy would charge investors relatively lower fees: 1% management fees plus 10% of performance over a cash hurdle (or, alternatively, a management fee of 2% only). This fee structure was low relative to the industry, where 2% management fees plus 20% of performance, often with no hurdle, was standard.

Keywords:
Hedge funds, Strategy, AQR's DELTA Strategy Case Solution

Click Here to place your order

OR

Contact us directly at ordercasesolutions@gmail.com if you want to solve the above case.