Shareholder Spotlight : AQR Capital Management - So Much Shit the Source List is a Skyscraper

Let’s cut the crap right from the start. AQR Capital Management, that shiny beacon of quantitative wizardry run by Cliff Asness, likes to parade itself as the smart money’s saviour – all algorithms, data-driven decisions, and promises of beating the market without the human fuck-ups. But peel back the layers, and what do you find? A festering pile of underperformance, shady dealings, layoffs, lawsuits, and a knack for rubbing shoulders with the ethically bankrupt. This isn’t some polished Wall Street fairy tale; it’s a gritty saga of hubris, greed, and the kind of institutional arrogance that leaves investors holding the bag while the big shots cash out.

I’ve dug through the dirt, and it’s not pretty. AQR’s history is littered with scandals that would make any decent person question why anyone still trusts these quants with their cash. And get this: as of mid-2025, AQR remains a significant shareholder in Cummins Inc., holding over 640,000 shares despite that company’s massive emissions cheating scandal. Cummins got slapped with a record-breaking $1.675 billion fine for installing defeat devices on nearly a million trucks, effectively poisoning the air to skirt regulations and boost profits. Isn’t it just fucking poetic? AQR, with its holier-than-thou quant ethos, invests in a firm that’s part of the Cummins ecosystem – yet another player in a long line of corporate cowboys with “alternative ideas” on ethical behaviour, where bending rules is just business as usual. If that’s not a red flag waving in your face, what the hell is?

The Great Quant Meltdown: Performance That Tanked Harder Than a Lead Balloon

Remember 2018 to 2020? While the world grappled with markets gone mad, AQR was busy proving that even the “smartest” algorithms can shit the bed. Assets under management plummeted from a peak of $226 billion in mid-2018 to around $140 billion by 2020, thanks to a toxic mix of poor returns and investors fleeing like rats from a sinking ship. Funds like the AQR Equity Market Neutral lost a staggering 38% by December 2020, and the Style Premia strategy bled over 15% in 2018, another 9% in 2019, and a brutal 27% in 2020. Asness himself called it the firm’s “toughest period ever,” but that’s just code for “we fucked up royally.” Outflows hit billions, with U.S. mutual funds alone seeing hundreds of millions vanish in early 2019. Critics piled on, accusing AQR of over-relying on flawed value strategies that crashed spectacularly. It’s outrageous – these guys charge fat fees for supposed genius, yet deliver losses that make a casino look like a safe bet.

And don’t buy the rebound hype. Sure, they’ve clawed back some ground in recent years, with strong returns in 2023 and parts of 2025, but that doesn’t erase the pain inflicted on investors who trusted their quant magic. It’s a classic hedge fund con: hype the upside, downplay the disasters.

Blood on the Floor: Job Cuts and Restructurings That Screamed Desperation

When the going gets tough, the tough start firing people – or so AQR seemed to think. In January 2019, after a dismal 2018, they slashed jobs by a “low single-digit percentage” of their 1,000-plus staff. But that was just the appetizer. By 2020, assets halved, and AQR axed five top managers, shuttered a struggling division, and liquidated funds amid “persistent outflows.” Fast forward to 2022, and they were closing fixed-income funds while the head of that trading desk bolted. LinkedIn data showed a 6% headcount drop in one month alone in 2019 – that’s 71 souls out the door.

This wasn’t “strategic realignment”; it was panic mode. AQR blamed market conditions, but come on – if your models are so brilliant, why the constant bloodletting? It’s a raw display of corporate ruthlessness, where employees pay the price for executive hubris.

The Mittal Mess: Firing a Trading Head Amid Insider Trading Shadows

Back in 2015, AQR showed how quickly they toss people under the bus. Hitesh Mittal, their head of trading hired in 2012, got the boot after the SEC slapped his former employer, Itaú Unibanco, with insider trading charges from his time there. Mittal wasn’t personally charged, but AQR didn’t care – they fired him on August 9, 2015, after a “temporary paid leave” that smelled like damage control. Later, Mittal sued his old firm for $6 million, claiming they derailed his career.

What a shitshow. AQR’s due diligence must have been asleep at the wheel to hire him in the first place. It raises ugly questions about what else they’re overlooking in pursuit of talent.

Suing the LME: Victims or Opportunists in the Nickel Squeeze Fiasco?

In 2022, AQR led a pack of hedge funds in suing the London Metal Exchange over its cancellation of $12 billion in nickel trades during a wild short squeeze. They demanded $96 million in lost profits, crying foul that the LME favoured big players like China’s Tsingshan while screwing the quants. The case dragged on for years, with courts upholding the LME’s actions as lawful. By May 2025, AQR and others dropped the suits, but not before racking up legal fees and spotlighting their aggressive commodity plays. The UK’s financial watchdog even fined the LME for mishandling the crisis, but AQR positioned itself as the wronged party.

Was this justice-seeking or just sour grapes from a bad bet? Either way, it exposes the cut-throat world of quant trading, where billions vanish in a flash and lawsuits follow like vultures.

Tax Dodges for the Ultra-Rich: The TA Delphi Plus Fund Sham

In 2024, AQR rolled out the TA Delphi Plus Fund, a vehicle designed to generate artificial losses that offset ordinary income taxes – not just capital gains, but wages too. It’s a more aggressive twist on hedge fund tax tricks, aimed squarely at the ultra-wealthy looking to slash their bills. Critics slam it as exploiting loopholes that could draw IRS scrutiny, especially amid growing outrage over how the rich game the system. No charges yet, but it’s the kind of move that reeks of prioritising elite clients over fair play.

Fucking typical. While average folks grind through tax season, AQR’s cooking up ways for billionaires to pay even less. It’s not innovation; it’s institutionalised greed.

Impersonation Scams: AQR’s Name Dragged Through the Mud

From 2024 into 2025, scammers have hijacked AQR’s brand on social media, peddling fake crypto schemes, investment ops, and bogus training courses. AQR issued stern warnings, insisting these are unauthorised frauds leading to real investor losses. They’re part of a broader wave hitting hedge funds like Baupost too, with Telegram and other platforms rife with imposters. While not AQR’s doing, it underscores the vulnerabilities in their high-profile image and the sleazy underbelly of finance where trust is the ultimate con.

If your name’s being used for scams, maybe it’s time to ask why crooks find it so appealing. Or perhaps it’s just karma for a firm that’s no stranger to controversy.

Taunting the Apes: Asness’ Meme Stock Feud with AMC

In 2022, Cliff Asness couldn’t resist poking the bear. He revealed AQR’s short position on AMC Entertainment – a tiny 0.12% of assets – and dared the “meme stock maniacs” to come at him, calling retail traders “morons” and a “paranoid investing death cult.” The apes bit back hard: AMC’s stock surged 34% shortly after, costing shorts billions across the industry. Rumours flew of AQR facing massive losses and withdrawals, though unconfirmed. Asness doubled down, vowing not to fight “morons” but ending up in Twitter spats anyway.

Outrageous arrogance. In a world where retail investors finally pushed back against hedge fund bullies, Asness came off as the out-of-touch villain. It’s a gritty reminder that quants aren’t invincible – sometimes the crowd bites back.

The Akorn Fraud Lawsuit: Playing Victim in Pharma Shenanigans

In 2020, AQR funds sued generic pharma giant Akorn Inc., alleging “massive fraud” in financial misstatements that tanked investor value. They claimed losses from Akorn’s data integrity issues and FDA violations, positioning themselves as lead plaintiffs in a class action. Akorn eventually settled broader claims, but AQR’s involvement highlights their exposure to corporate rot in portfolios.

Here they are, crying foul over someone else’s scam while their own house has plenty of skeletons. Hypocrisy much?

Denying the 2007 Quant Quake: Rumours of Losses and Halted IPOs

Amid the 2007 credit crunch, quants like AQR got hammered. Rumours swirled of massive setbacks, but AQR denied it all, claiming they were “performing reasonably well” with assets growing to $38.5 billion. Still, they halted IPO plans amid volatility, and funds like Absolute Return later admitted over 50% drops from 2007 peaks. Asness even recapped the “quant crisis” in later writings, admitting overleveraging and crowding caused the pain.

Smoke and mirrors. Denying rumours while the ship takes on water – it’s the hedge fund playbook, and AQR played it to a tee.

Other Whispers: Exiting Reinsurance and Dodgy Holdings

In 2015, AQR quietly exited the reinsurance business, winding down AQR Re after just a few years – a move that screamed “this isn’t working.” Social media buzzed in 2023 about suspicious holdings in Southland Holdings (SLND), which spiked oddly amid pump-and-dump vibes, with AQR named alongside Citadel. No probes, but it fuels questions about manipulation. Wirecard links? Minimal – one fund held shares pre-collapse, but nothing tying them to the fraud.

These aren’t smoking guns, but they add to the stench. AQR’s not just unlucky; they’re knee-deep in finance’s grimy corners.

AQR’s bounced back with AI hype and solid 2023 returns, but the scars remain. This quant empire’s built on bullshit, and investors deserve better than glossy algorithms hiding a rotten core.

Lee Thompson – Founder, The Cummins Accountability Project

Shareholder Spotlight : AQR Capital Management – So Much Shit the Source List is a Skyscraper